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To Segregate or to Integrate: Education Politics and Democracy

  • David de la Croix

    (FNRS)

  • Matthias Doepke

    (IRES and CORE)

In most democracies, the majority of education expenditures is financed by the government. In non-democracies, we observe a wide variation in the mix of public and private funding of education. In addition, countries with high inequality tend to rely more heavily on private schooling. We develop a theory which integrates private decision on education and fertility with voting on public education expenditures. The theory is able to account for the facts mentioned above. Countries with high inequality exhibit more private education expenditures since rich people opt out of the public system. In non-democracies, concentration of political power leads to multiple equilibria in the determination of public education spending.

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Paper provided by UCLA Department of Economics in its series UCLA Economics Working Papers with number 831.

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Date of creation: 01 Dec 2003
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Handle: RePEc:cla:uclawp:831
Contact details of provider: Web page: http://www.econ.ucla.edu/

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