Parental Educational Styles with Externalities

Antonio Cabrales and Esther Hauk

No 20190, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper develops a model to understand the conditions under which groups within a society choose between a collaborative or individualist approach to education. A key feature of the model is the presence of externalities, which can lead to multiple equilibria. This framework helps explain the persistence of diverse local educational cultures, even within relatively homogeneous countries. These features yield important and subtle insights for public policy. Policymakers may need to focus either on shifting beliefs or on enhancing the abilities of parents and teachers. We also analyze the incentives driving segregation in education and explore potential policy responses.

Date: 2025-05
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