Arbeitspapier

Public education for the children left behind

This paper examines the role of public education in the context of parental migration, and it studies the effects of an expansive income tax policy that is adopted to increase public education expenditure per pupil. It is shown that such a policy may exacerbate income inequality in the long run if for the less skilled dynasties, the benefits of more public spending on education does not make up for the negative effects of increased parental absences. However, if the migration-induced tax base erosion is not severe, an expansive income tax policy indeed enhances future human capital for all dynasties, and moreover, it may help the less skilled households escape from the poverty trap, thus reducing long-run income inequality.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 4833

Classification
Wirtschaft
Taxation, Subsidies, and Revenue: General
National Government Expenditures and Education
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Economic Growth and Aggregate Productivity: General
Subject
Human capital
income inequality
parental migration
public education expenditure
tax base erosion
Öffentliche Bildungsausgaben
Bildungsinvestition
Eltern
Internationale Wanderung
Einkommensteuerpolitik
Steueraufkommen
Einkommensverteilung
Bildungsniveau
Theorie

Event
Geistige Schöpfung
(who)
Camacho, Carmen
Shen, I-ling
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2010

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Camacho, Carmen
  • Shen, I-ling
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2010

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