Income Inequality, the Median Voter, and the Support for Public Education

Sean Corcoran and William Evans

No 16097, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using a panel of U.S. school districts spanning 1970 - 2000, we examine the relationship between income inequality and fiscal support for public education. In contrast with recent theoretical and empirical work suggesting a negative relationship between inequality and public spending, we find results consistent with a median voter model, in which inequality that reduces the median voter's tax share induces higher local spending on public education. We estimate that 12 to 22 percent of the increase in local school spending over this period is attributable to rising inequality.

JEL-codes: H72 I21 I22 (search for similar items in EconPapers)
Date: 2010-06
New Economics Papers: this item is included in nep-edu, nep-lab, nep-pbe, nep-pol and nep-ure
Note: CH ED PE
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Citations: View citations in EconPapers (48)

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