Low-skilled Immigration and Education Policy with Endogenous Fertility

Davide Dottori and Shen I. Ling
Additional contact information
Shen I. Ling: UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics

No 2008022, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: This paper studies the impact of low-skilled immigration on the host country’s education policy, which is formulated by the natives via voting and refers to both school funding sources and resources in the public funded schools. When the size of low-skilled immigrants is large, it is found that wealthier natives are likely to opt out from public into private school. Four main effects of immigration are taken into account : (1) greater congestion in public school; (2) lower average tax base for education funding; (3) reduced low-skilled wage and so more low-skilled natives’ dependence on public education; (4) higher skill premium, which induces high-skilled natives to privately invest in their children’ s education and hence weakens their support to finance public school. The theoretical predictions are not at odds with cross-country stylized facts revealed in both micro and macro data. Moreover, with endogenous fertility, the opting-out decision taken by some native parents results in the empirically observed fertility differential between natives and immigrants

Keywords: voting, taxes and subsidies, education; fertitlity, migration (search for similar items in EconPapers)
JEL-codes: D72 H42 H52 I21 O15 (search for similar items in EconPapers)
Pages: 61
Date: 2008-06-01
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-lab and nep-mig
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://sites.uclouvain.be/econ/DP/IRES/2008-22.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2008022

Access Statistics for this paper

More papers in Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Virginie LEBLANC ().