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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
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    Keywords

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    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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