Inequality, Opting-out and Public Education Funding

Arbeitspapier

We investigate the relationship between inequality and political support for public education funding in a model of endogenous fertility and school choice. Household income heterogeneity is consistent with the skewness of empirical income distributions. Inequality can drive education spending in opposite directions in poor and rich economies. A mean preserving spread increases tax rates and public school enrollment, but decreases public spending per student in low income economies, while it has opposite effects at high income levels. An increase in the average income level can also have non-monotonic effects.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5115

Classification and Topics

• Classification: Wirtschaft ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior ; Publicly Provided Private Goods ; Analysis of Education ; Educational Finance; Financial Aid
• Subject: education funding ; inequality ; political economy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Arcalean, Calin ; Schiopu, Ioana Cosmina
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/107317
• Last update: 10.03.2025, 11:42 AM CET