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Public versus private education when differential fertility matters

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  • de la CROIX, David
  • DOEPKE, Matthias

Abstract

We assess the merits of different education systems in a framework that accounts for the joint decision problem of parents regarding fertility and education. Specifically, we compare the implications of a public and a private schooling regime for economic growth and inequality. We find that private schooling leads to higher growth when there is little inequality in human capital endowments across families. In contrast, when inequality is high, public education yields higher growth by reducingfertility differentials. In addition, public schooling leads to income convergence, while private schooling can result in ever increasing inequality. Our analysis highlights theimp ortanceof accounting for endogenous fertility differentials when analyzing educational policies.

Suggested Citation

  • de la CROIX, David & DOEPKE, Matthias, 2002. "Public versus private education when differential fertility matters," LIDAM Discussion Papers CORE 2002022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2002022
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