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Public Education for the Children Left Behind

Author

Listed:
  • Carmen CAMACHO

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • I-Ling SHEN

    (Université de Genève, Department of Econometrics, Institute for the Sudy of Labor (IZA) and Institut de Recherches économiques et sociales de l’UCL)

Abstract

This paper examines the role of public education in the context of parental migration, and it studies the effects of an expansive income tax policy that is adopted to increase public education expenditure per pupil. It is shown that such a policy may exacerbate income inequality in the long run if for the less skilled dynasties, the benefits of more public spending on education does not make up for the negative effects of increased parental absences. However, if the migration-induced tax base erosion is not severe, an expansive income tax policy indeed enhances future human capital for all dynasties, and moreover, it may help the less skilled households escape from the poverty trap, thus reducing long-run inequality.

Suggested Citation

  • Carmen CAMACHO & I-Ling SHEN, 2010. "Public Education for the Children Left Behind," LIDAM Discussion Papers IRES 2010006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2010006
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2010006.pdf
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    Cited by:

    1. Yumna Hasan & Waqar Wadho, 2020. "Unskilled Migration, Child labor and Human Capital Accumulation of Children in the Presence of Parental Absenteeism," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 25(2), pages 119-138, July-Dec.

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    Keywords

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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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