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Low-skilled Immigration and Education Policy with Endogenous Fertility

Author

Listed:
  • Davide, DOTTORI

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

  • I. Ling, SHEN

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

Abstract

This paper studies the impact of low-skilled immigration on the host country’s education policy, which is formulated by the natives via voting and refers to both school funding sources and resources in the public funded schools. When the size of low-skilled immigrants is large, it is found that wealthier natives are likely to opt out from public into private school. Four main effects of immigration are taken into account : (1) greater congestion in public school; (2) lower average tax base for education funding; (3) reduced low-skilled wage and so more low-skilled natives’ dependence on public education; (4) higher skill premium, which induces high-skilled natives to privately invest in their children’ s education and hence weakens their support to finance public school. The theoretical predictions are not at odds with cross-country stylized facts revealed in both micro and macro data. Moreover, with endogenous fertility, the opting-out decision taken by some native parents results in the empirically observed fertility differential between natives and immigrants

Suggested Citation

  • Davide, DOTTORI & I. Ling, SHEN, 2008. "Low-skilled Immigration and Education Policy with Endogenous Fertility," Discussion Papers (ECON - Département des Sciences Economiques) 2008022, Université catholique de Louvain, Département des Sciences Economiques.
    • Handle: RePEc:ctl:louvec:2008022
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2008-22.pdf
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    Cited by:

    1. Facundo Albornoz & Antonio Cabrales & Esther Hauk, 2018. "Immigration and the school system," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(4), pages 855-890, June.

    More about this item

    Keywords

    voting; taxes and subsidies; education; fertitlity; migration;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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