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Does immigration affect public education expenditures? Quasi-experimental evidence

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  • Biagio Speciale

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper studies the impact of immigration on public education expenditures in EU-15 countries. Identification comes from the use of the 1990s Balkan wars (in Bosnia and Kosovo) as a source of exogenous variation in immigrant inflows to mitigate a possible Tiebout-type bias from endogenous mobility. An increase in foreign population is found to have a small negative effect on public education expenditures. The elasticity of education spending with respect to immigrant population share is −.15. The negative relationship between immigration and public spending on education is consistent with the empirical literature showing evidence on low levels of public good provision in heterogeneous and ethnic diverse societies.

Suggested Citation

  • Biagio Speciale, 2012. "Does immigration affect public education expenditures? Quasi-experimental evidence," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00755890, HAL.
  • Handle: RePEc:hal:cesptp:hal-00755890
    DOI: 10.1016/j.jpubeco.2012.04.004
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00755890
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    Cited by:

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    2. Hollard, Guillaume & Sene, Omar, 2020. "What drives the quality of schools in Africa? Disentangling social capital and ethnic divisions," Economics of Education Review, Elsevier, vol. 74(C).
    3. Benjamin Elsner & Jeff Concannon, 2020. "Immigration and Redistribution," Working Papers 202024, School of Economics, University College Dublin.
    4. Luca Marchiori & Patrice Pieretti & Benteng Zou, 2018. "Immigration, Occupational Choice and Public Employment," Annals of Economics and Statistics, GENES, issue 131, pages 83-116.
    5. Jinno, Masatoshi & Yasuoka, Masaya, 2021. "Endogenous fertility and unemployment -Considering the effects of immigrants through school system," MPRA Paper 106379, University Library of Munich, Germany.
    6. Jakobsson, Niklas & Tengstam, Sven, 2014. "Does immigration affect welfare state generosity? Quasi-experimental evidence," Working Papers in Economics 599, University of Gothenburg, Department of Economics.
    7. Tanaka, Ryuichi & Farre, Lidia & Ortega, Francesc, 2018. "Immigration, assimilation, and the future of public education," European Journal of Political Economy, Elsevier, vol. 52(C), pages 141-165.
    8. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    9. Bove, Vincenzo & Elia, Leandro & Ferraresi, Massimiliano, 2019. "Immigration, fear of crime and public spending on security," CAGE Online Working Paper Series 434, Competitive Advantage in the Global Economy (CAGE).
    10. Bargain, Olivier & Stephane, Victor & Valette, Jérôme, 2021. "Another Brick in the Wall. Immigration and Electoral Preferences: Direct Evidence from State Ballots," IZA Discussion Papers 14233, Institute of Labor Economics (IZA).
    11. Farré, Lídia & Ortega, Francesc & Tanaka, Ryuichi, 2015. "Immigration and School Choices in the Midst of the Great Recession," IZA Discussion Papers 9234, Institute of Labor Economics (IZA).
    12. Bettin, Giulia & Sacchi, Agnese, 2020. "Health spending in Italy: The impact of immigrants," European Journal of Political Economy, Elsevier, vol. 65(C).
    13. Björn NILSSON, 2019. "Education and migration: insights for policymakers," Working Paper 23ca9c54-061a-4d60-967c-f, Agence française de développement.
    14. J. Atsu Amegashie & Michael Batu, 2015. "Wider Boundaries: The Welfare State and International Remittances," CESifo Working Paper Series 5456, CESifo.
    15. Mäkelä Erik & Viren Matti, 2018. "Migration Effects on Municipalities’ Expenditures," Review of Economics, De Gruyter, vol. 69(1), pages 1-28, April.
    16. Wenmei Liao & Dong Xiang & Meiqiu Chen & Jiangli Yu & Qianfeng Luo, 2018. "The Impact of Perceived Value on Farmers’ Regret Mood Tendency," Sustainability, MDPI, Open Access Journal, vol. 10(10), pages 1-14, October.
    17. Jordi Jofre-Monseny & Pilar Sorribas-Navarro & Javier Vázquez-Grenno, 2016. "Immigration and local spending in social services: evidence from a massive immigration wave," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(6), pages 1004-1029, December.
    18. Tanaka, Ryuichi & Farré, Lídia & Ortega, Francesc, 2014. "Immigration, Naturalization, and the Future of Public Education," IZA Discussion Papers 8342, Institute of Labor Economics (IZA).
    19. Brunner, Eric J. & Johnson, Erik B., 2016. "Intergenerational conflict and the political economy of higher education funding," Journal of Urban Economics, Elsevier, vol. 91(C), pages 73-87.
    20. Murard, Elie, 2017. "Less Welfare or Fewer Foreigners? Immigrant Inflows and Public Opinion towards Redistribution and Migration Policy," IZA Discussion Papers 10805, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Immigration; Public spending on education; Tiebout-type bias; Quasi-experimental evidence;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I2 - Health, Education, and Welfare - - Education
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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