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Low-Skilled Immigration and th Expansion of Private Schools

  • Davide, DOTTORI
  • I-Ling, SHEN

This paper studies the impact of low-skilled immigration on the host country’s education system, which is characterized by sources of school funding, expenditres per pupil, and types of parents who are more likely to send children to publicly (privately) funded schools. When the size of low-skilled immigrants is large, it is found that wealthier natives are likely to opt out from public into private schools. Four main effects of immigration are taken into account : (1) greater congestion in public school; (2) lower average tax base for education funding; (3) reduced low-skilled wage and so more low-skilled natives to privately invest in their children’s education and hence weakens their support to finance public school. The theoretical predictions are not at odds with cross-country stylized facts revealed in both micro and macro data. Moreover, with endogenous fertility, the opting-out decision taken by some native parents results in the empirically observed fertility differential between natives and immigrants

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Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2008023.

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Length: 61
Date of creation: 01 Jul 2008
Date of revision:
Handle: RePEc:ctl:louvec:2008023
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  1. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
  2. David DE LA CROIX & Matthias DOEPKE, 2002. "Public versus Private Education When Diferential Fertility Matters," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
  4. DE LA CROIX, David & DOEPKE, Matthias, 2001. "Inequality and Growth : Why Differential Fertility Matters," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2001008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Johnson, George E, 1984. "Subsidies for Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 303-18, July.
  6. Tamura, Robert, 1994. "Fertility, Human Capital and the Wealth of Families," Economic Theory, Springer, vol. 4(4), pages 593-603, May.
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  9. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  10. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
  11. Gradstein, Mark & Justman, Moshe, 2001. "Public Education and the Melting Pot," CEPR Discussion Papers 2924, C.E.P.R. Discussion Papers.
  12. Catia Batista, 2008. "Why Doesn't Labor Flow from Poor to Rich Countries? Micro Evidence from the European Integration Experience," Economics Series Working Papers 402, University of Oxford, Department of Economics.
  13. Mayda, Anna Maria, 2004. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," IZA Discussion Papers 1115, Institute for the Study of Labor (IZA).
  14. David Card, 2009. "Immigration and Inequality," CReAM Discussion Paper Series 0907, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  15. Edith Sand & Assaf Razin, 2006. "Immigration and the Survival of Social Security: A Political Economy Model," NBER Working Papers 12800, National Bureau of Economic Research, Inc.
  16. Fernandez, Raquel & Rogerson, Richard, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 135-64, February.
  17. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 84-117, February.
  18. John Conlon & Mwangi Kimenyi, 1991. "Attitudes towards race and poverty in the demand for private education: The case of Mississippi," The Review of Black Political Economy, Springer, vol. 20(2), pages 5-22, December.
  19. Woojin Lee & John E. Roemer, 2004. "Racism and Redistribution in the United States: A Solution to the Problem of American Exceptionalism," Cowles Foundation Discussion Papers 1462, Cowles Foundation for Research in Economics, Yale University.
  20. Raquel Fernandez, 2001. "Sorting, Education and Inequality," NBER Working Papers 8101, National Bureau of Economic Research, Inc.
  21. Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., vol. 35(2), pages 297-321.
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