Public Education for the Children Left Behind

Carmen Camacho and I-Ling Shen

No 4833, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the role of public education in the context of parental migration, and it studies the effects of an expansive income tax policy that is adopted to increase public education expenditure per pupil. It is shown that such a policy may exacerbate income inequality in the long run if for the less skilled dynasties, the benefits of more public spending on education does not make up for the negative effects of increased parental absences. However, if the migration-induced tax base erosion is not severe, an expansive income tax policy indeed enhances future human capital for all dynasties, and moreover, it may help the less skilled households escape from the poverty trap, thus reducing long-run income inequality.

Keywords: human capital; income inequality; parental migration; public education expenditure; tax base erosion (search for similar items in EconPapers)
JEL-codes: H20 H52 O15 O40 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2010-03
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Public Education for the Children Left Behind (2010)
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