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Immigration and School Choices in the Midst of the Great Recession

Author

Listed:
  • Farré, Lídia

    () (University of Barcelona)

  • Ortega, Francesc

    () (Queens College, CUNY)

  • Tanaka, Ryuichi

    () (University of Tokyo)

Abstract

This paper empirically analyzes the effects of immigration on the schooling decisions of natives. We employ household-level data for Spain for years 2000-2012, a period characterized by a large immigration wave and a severe recession. Our estimates reveal that Spanish households responded to immigration by increasing their educational expenditures. This result was mainly driven by an important native flight from tuition-free schools toward private ones. We also find strong evidence of cream- skimming: only the more educated native households switched to private schools in response to immigration. Finally, our simulations suggest that the reduction in household income due to the Great Recession mitigated the flight toward private schools triggered by immigration but was not enough to offset it. We argue that these findings are driven by several factors: school assignment rules, concerns over negative peer effects, and political economy forces.

Suggested Citation

  • 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).
  • Handle: RePEc:iza:izadps:dp9234
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    References listed on IDEAS

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    1. Joan Llull, 2018. "Immigration, Wages, and Education: A Labour Market Equilibrium Structural Model," Review of Economic Studies, Oxford University Press, vol. 85(3), pages 1852-1896.
    2. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 497-532.
    3. Farré Lidia & González Libertad & Ortega Francesc, 2011. "Immigration, Family Responsibilities and the Labor Supply of Skilled Native Women," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-48, June.
    4. Raquel Carrasco & Juan Jimeno & A. Ortega, 2008. "The effect of immigration on the labor market performance of native-born workers: some evidence for Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 627-648, July.
    5. Speciale, Biagio, 2012. "Does immigration affect public education expenditures? Quasi-experimental evidence," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 773-783.
    6. Tanaka, Ryuichi & Farré, Lídia & Ortega, Francesc, 2014. "Immigration, Naturalization, and the Future of Public Education," IZA Discussion Papers 8342, Institute of Labor Economics (IZA).
    7. Caroline M. Hoxby, 2000. "The Effects of Class Size on Student Achievement: New Evidence from Population Variation," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1239-1285.
    8. Zimmermann, Laura & Gataullina, Liliya & Constant, Amelie & Zimmermann, Klaus F., 2008. "Human capital and ethnic self-identification of immigrants," Economics Letters, Elsevier, vol. 98(3), pages 235-239, March.
    9. Antonio Ciccone & Walter Garcia-Fontes, 2014. "Gender peer effects in school, a birth cohort approach," Economics Working Papers 1424, Department of Economics and Business, Universitat Pompeu Fabra.
    10. Jorge Calero & Josep-Oriol Escardíbul, 2007. "Evaluación de servicios educativos: El rendimiento en los centros públicos y privados medido en PISA-2003," Working Papers 2007/7, Institut d'Economia de Barcelona (IEB).
    11. Christian Dustmann & Francesco Fasani & Biagio Speciale, 2017. "Illegal Migration and Consumption Behavior of Immigrant Households," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 654-691.
    12. Christian Dustmann & Tommaso Frattini & Gianandrea Lanzara, 2012. "Educational achievement of second‐generation immigrants: an international comparison," Economic Policy, CEPR;CES;MSH, vol. 27(69), pages 143-185, January.
    13. 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.
    14. David Trillo del Pozo & Marta Pérez Garrido & José Marcos Crespo Cañizares, "undated". "Análisis Económico Del Rendimiento En La Prueba De Conocimientos Y Destrezas Imprescindibles De La Comunidad De Madrid," Working Papers 13-06 Classification-JEL , Instituto de Estudios Fiscales.
    15. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 35-52.
    16. Joseph G. Altonji & Ching-I Huang & Christopher R. Taber, 2015. "Estimating the Cream Skimming Effect of School Choice," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 266-324.
    17. Brindusa Anghel & Antonio Cabrales, 2010. "The Determinants of Success in Primary Education in Spain," Working Papers 2010-20, FEDEA.
    18. Jorge Calero & Josep-Oriol Escardíbul, 2007. "Evaluación de servicios educativos: el rendimiento en los centros públicos y privados medido en PISA-2003," Hacienda Pública Española, IEF, vol. 183(4), pages 33-66, december.
    19. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "An Evaluation of Instrumental Variable Strategies for Estimating the Effects of Catholic Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 791-821.
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    Cited by:

    1. Rosa Sanchis-Guarner, 2017. "Decomposing the impact of immigration on house prices," Working Papers 2017/14, Institut d'Economia de Barcelona (IEB).
    2. Frattini, Tommaso & Meschi, Elena, 2019. "The effect of immigrant peers in vocational schools," European Economic Review, Elsevier, vol. 113(C), pages 1-22.
    3. repec:eee:poleco:v:52:y:2018:i:c:p:141-165 is not listed on IDEAS
    4. Ortega, Francesc & Tanaka, Ryuichi, 2015. "Immigration and the Political Economy of Public Education: Recent Perspectives," IZA Discussion Papers 8778, Institute of Labor Economics (IZA).
    5. Tanaka, Ryuichi & Farré, Lídia & Ortega, Francesc, 2014. "Immigration, Naturalization, and the Future of Public Education," IZA Discussion Papers 8342, Institute of Labor Economics (IZA).
    6. Jesús Fernández-Huertas Moraga, 2014. "Immigrant Selection over the Business Cycle: The Spanish Boom and the Great Recession," Working Papers 2014-05, FEDEA.

    More about this item

    Keywords

    recession; public school; education; immigration;

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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