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Public education provision, private schooling and income redistribution

Francesco Andreoli (), Giorgia Casalone () and Daniela Sonedda
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Giorgia Casalone: Università del Piemonte Orientale

The Journal of Economic Inequality, 2018, vol. 16, issue 4, No 5, 553-582

Abstract: Abstract Availability of free public education induces a transfer in kind among households with school age children. We provide evidence of the redistributive character of public education provision. We estimate structural quantile treatment effects of household income on the distribution of expected educational transfers in kind. Under the assumption that education quality is a normal good, better services (ancillary to the core education mission) supplied by private schools increase quality therein and reduce the incentives for wealthy households to enroll in public education. Because of these incentives, rich families benefit less from educational transfers in kind and the public education system is redistributive. Using household survey data from Italy, we find that an increase in net income reduces the value of the expected educational in kind transfers for compulsory education.

Keywords: Public education provision; Sorting; Structural quantile treatment effects; Redistribution; Inequality (search for similar items in EconPapers)
Date: 2018
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