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Voting on Labour-Market Integration and Education Policy when Citizens Differ in Mobility and Ability

  • Alexander Haupt
  • Silke Uebelmesser

We analyse how institutional and political decisions are intertwined. Citizens who differ in their mobility and ability vote first on labour market integration and afterwards on education policy. The institutional decision on integration influences the succeeding education policy. More surprisingly, the prospect of voting on education policy also affects the preceding integration decision. There are incentives for citizens to vote strategically for the institutional setting in which their preferred education policy is more successful at the polls. We show how a ‘joint’ analysis of the institutional and political decision alters the results compared to an ‘isolated’ analysis of either of the two decisions. Also, we explore how the two-dimensional heterogeneity of the citizens shapes the voting equilibrium in our setting with sequential voting.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2588.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2588
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  16. Haupt, Alexander, 2012. "The evolution of public spending on higher education in a democracy," European Journal of Political Economy, Elsevier, vol. 28(4), pages 557-573.
  17. Stark, Oded & Wang, Yong, 2001. "Inducing Human Capital Formation: Migration as a Substitute for Subsidies," Economics Series 100, Institute for Advanced Studies.
  18. Raquel Fernandez & Richard Rogerson, 1994. "On the political economy of education subsidies," Staff Report 185, Federal Reserve Bank of Minneapolis.
  19. De Fraja, Gianni, 2001. "Education Policies: Equity, Efficiency and Voting Equilibrium," Economic Journal, Royal Economic Society, vol. 111(471), pages C104-19, May.
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  21. Antonio Rangel, 2003. "Forward and Backward Intergenerational Goods: Why Is Social Security Good for the Environment?," American Economic Review, American Economic Association, vol. 93(3), pages 813-834, June.
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