IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-03887401.html
   My bibliography  Save this paper

Education Politics, Schooling Choice and Public School Quality: The Impact of Income Polarisation

Author

Listed:
  • Majda Benzidia

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Michel Lubrano

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, JUFE - Jiangxi University of Finance and Economics)

  • Paolo Melindi-Ghidi

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

What is the role of income polarisation for explaining differentials in public funding of education? To answer this question, we provide a new theoretical modelling for the income distribution that can directly monitor income polarisation. It leads to a new income polarisation index where the middle class is represented by an interval. We implement this distribution in a political economy model with endogenous fertility and public/private educational choices. We show that when households vote on public schooling expenditures, polarisation matters for explaining disparities in public education funding across communities. Using micro-data covering two groups of school districts, we find that both income polarisation and income inequality affect public school funding with opposite signs whether there exist a Tax Limitation Expenditure (TLE) or not.

Suggested Citation

  • Majda Benzidia & Michel Lubrano & Paolo Melindi-Ghidi, 2022. "Education Politics, Schooling Choice and Public School Quality: The Impact of Income Polarisation," Working Papers hal-03887401, HAL.
  • Handle: RePEc:hal:wpaper:hal-03887401
    Note: View the original document on HAL open archive server: https://amu.hal.science/hal-03887401
    as

    Download full text from publisher

    File URL: https://amu.hal.science/hal-03887401/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David De La Croix & Matthias Doepke, 2009. "To Segregate or to Integrate: Education Politics and Democracy," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 597-628.
    2. Di Gioacchino, Debora & Sabani, Laura, 2009. "Education policy and inequality: A political economy approach," European Journal of Political Economy, Elsevier, vol. 25(4), pages 463-478, December.
    3. Calin Arcalean & Ioana Schiopu, 2016. "Inequality, opting-out and public education funding," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(4), pages 811-837, April.
    4. R. Quandt, 1966. "Old and new methods of estimation and the pareto distribution," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 10(1), pages 55-82, December.
    5. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality in the United States, 1913–1998," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 1-41.
    6. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    7. Glomm, Gerhard & Ravikumar, B., 2003. "Public education and income inequality," European Journal of Political Economy, Elsevier, vol. 19(2), pages 289-300, June.
    8. Yuki Uchida & Tetsuo Ono, 2020. "Inequality and education choice," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(4), pages 980-1018, August.
    9. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
    10. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    11. Soares, Jorge, 2003. "Self-interest and public funding of education," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 703-727, March.
    12. James Foster & Michael Wolfson, 2010. "Polarization and the decline of the middle class: Canada and the U.S," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 247-273, June.
    13. Paolo Melindi‐Ghidi, 2018. "Inequality, educational choice, and public school quality in income‐mixing communities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(6), pages 914-943, December.
    14. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November.
    15. You‐Qiang Wang & Kai‐Yuen Tsui, 2000. "Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363, July.
    16. Wang, You-Qiang & Tsui, Kai-Yuen, 2000. "Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363.
    17. Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, vol. 62(3), pages 297-325, November.
    18. Sean Corcoran & William N. Evans, 2010. "Income Inequality, the Median Voter, and the Support for Public Education," NBER Working Papers 16097, National Bureau of Economic Research, Inc.
    19. Fernandez, Raquel & Rogerson, Richard, 1998. "Public Education and Income Distribution: A Dynamic Quantitative Evaluation of Education-Finance Reform," American Economic Review, American Economic Association, vol. 88(4), pages 813-833, September.
    20. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    21. Raquel Fernandez & Richard Rogerson, 1995. "On the Political Economy of Education Subsidies," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(2), pages 249-262.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dotti, Valerio, 2019. "The political economy of public education," Research in Economics, Elsevier, vol. 73(1), pages 35-52.
    2. Paolo Melindi‐Ghidi, 2018. "Inequality, educational choice, and public school quality in income‐mixing communities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(6), pages 914-943, December.
    3. Debora Di Gioacchino & Laura Sabani & Stefano Usai, 2023. "Why does education expenditure differ across countries? The role of income inequality, human capital and the inclusiveness of education systems," Working Papers in Public Economics 236, University of Rome La Sapienza, Department of Economics and Law.
    4. Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.
    5. Tomasz Panek & Jan Zwierzchowski, 2020. "Median Relative Partial Income Polarization Indices: Investigating Economic Polarization in Poland During the Years 2005–2015," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 1025-1044, June.
    6. Duclos, Jean-Yves & Echevin, Damien, 2005. "Bi-polarization comparisons," Economics Letters, Elsevier, vol. 87(2), pages 249-258, May.
    7. Mohammad Hussain, 2009. "The sensitivity of income polarization," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(3), pages 207-223, September.
    8. Roope, Laurence & Niño-Zarazúa, Miguel & Tarp, Finn, 2018. "How polarized is the global income distribution?," Economics Letters, Elsevier, vol. 167(C), pages 86-89.
    9. Wang, Chen & Wan, Guanghua, 2015. "Income polarization in China: Trends and changes," China Economic Review, Elsevier, vol. 36(C), pages 58-72.
    10. Tanzhe Tang & Amineh Ghorbani & Flaminio Squazzoni & Caspar G. Chorus, 2022. "Together alone: a group-based polarization measurement," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3587-3619, October.
    11. Oriol Carbonell-Nicolau & Humberto Llavador, 2021. "Inequality, Bipolarization, and Tax Progressivity," American Economic Journal: Microeconomics, American Economic Association, vol. 13(4), pages 492-513, November.
    12. Satya Chakravarty & Bhargav Maharaj, 2012. "Ethnic polarization orderings and indices," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(1), pages 99-123, May.
    13. Ilaria Petrarca & Roberto Ricciuti, 2015. "Relative income distribution in six European countries: market and disposable income," LIS Working papers 629, LIS Cross-National Data Center in Luxembourg.
    14. Yeşilırmak, Muharrem, 2019. "Bonus pay for teachers, spatial sorting, and student achievement," European Journal of Political Economy, Elsevier, vol. 59(C), pages 129-158.
    15. Marta Pascual & David Cantarero & Paloma Lanza, 2018. "Health polarization and inequalities across Europe: an empirical approach," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1039-1051, November.
    16. Salwa Trabelsi, 2019. "The governance threshold effect on the relationship between public education financing and income inequality," Economics Bulletin, AccessEcon, vol. 39(2), pages 1057-1075.
    17. Christopher Rauh, 2015. "The Political Economy of Early and College Education - Can Voting Bend the Great Gatsby Curve?," 2015 Meeting Papers 82, Society for Economic Dynamics.
    18. Haupt, Alexander, 2012. "The evolution of public spending on higher education in a democracy," European Journal of Political Economy, Elsevier, vol. 28(4), pages 557-573.
    19. Catalina Gutiérrez & Ryuichi Tanaka, 2009. "Inequality and education decisions in developing countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(1), pages 55-81, March.
    20. Chiara Assunta Ricci & Sergio Scicchitano, 2021. "Decomposing changes in income polarization by population group: what happened during the crisis?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(1), pages 235-259, April.

    More about this item

    Keywords

    Education Politics; Schooling Choice; Income polarisation; Probabilistic Voting; Bayesian Inference;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-03887401. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.