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Low-Skilled Immigration and the Expansion of Private Schools

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  • Dottori, Davide

    () (Université catholique de Louvain)

  • Shen, I-Ling

    () (Milken Institute)

Abstract

This paper provides a political-economic model to study the impact of low-skilled immigration on the host country's education system, which is characterized by sources of school funding, the average expenditure per pupil, and the type of parents who are more likely to send their children to publicly or privately funded schools. Four main effects of immigration are considered: (1) greater congestion in public schools; (2) a lower average tax base for education funding; (3) reduced wages for low-skilled workers and so more dependence by low-skilled locals on public education; (4) a greater skill premium, which makes it easier for high-skilled locals to afford private education for their children, and hence weakens their support for financing public school. It is found that when the size of low-skilled immigrants is large, the education regime tends to become more segregated with wealthier locals more likely to opt out of the public system into private schools. The fertility differential between high and low-skilled locals increases due to a quantity/quality trade-off. The theoretical predictions are consistent with empirical evidence from both the U.S. census data and the OECD Programme for International Student Assessment (2003).

Suggested Citation

  • Dottori, Davide & Shen, I-Ling, 2009. "Low-Skilled Immigration and the Expansion of Private Schools," IZA Discussion Papers 3946, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3946
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    Cited by:

    1. 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.
    2. Gerdes, Christer, 2010. "Does Immigration Induce ‘Native Flight’ from Public Schools? Evidence from a large scale voucher program," SULCIS Working Papers 2010:1, Stockholm University, Linnaeus Center for Integration Studies - SULCIS.
    3. Coen-Pirani, Daniele, 2011. "Immigration and spending on public education: California, 1970–2000," Journal of Public Economics, Elsevier, vol. 95(11), pages 1386-1396.
    4. Speciale, Biagio, 2012. "Does immigration affect public education expenditures? Quasi-experimental evidence," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 773-783.
    5. Paololo Melindi Ghidi, 2012. "Income Inequality, School Choice and the Endogenous Gentrification of US Cities," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2012006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    More about this item

    Keywords

    voting; taxes and subsidies; education; fertility; migration;

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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