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Opting-out of Public Education in Urban Economies

Francisco Martínez-Mora

No E2003/52, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: We investigate how mobility among communities in residence-based public education systems influence households’ choices among public and private schooling. With this objective, we construct a model in which households differ along a single dimension: income. Intermediate income households unsatisfied with their local public school can either move to a community with a better public school or, if the price of housing there is very high, not move and acquire private education. If they choose the latter, perfect income stratification across educational sectors no longer characterizes equilibrium. Moreover, the private schools these households choose have lower quality than some private counterparts.

Keywords: education; hierarchy of school qualities; school choice; stratification; Tiebout. (search for similar items in EconPapers)
JEL-codes: H42 H73 I20 R13 R31 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2003
New Economics Papers: this item is included in nep-edu, nep-geo, nep-pbe and nep-ure
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