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Public Education for the Children Left Behind

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  • Camacho, Carmen

    (Paris School of Economics)

  • Shen, I-Ling

    (Milken Institute)

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.

Suggested Citation

  • Camacho, Carmen & Shen, I-Ling, 2010. "Public Education for the Children Left Behind," IZA Discussion Papers 4833, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4833
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    References listed on IDEAS

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    Cited by:

    1. Yumna Hasan & Waqar Wadho, 2020. "Unskilled Migration, Child labor and Human Capital Accumulation of Children in the Presence of Parental Absenteeism," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 25(2), pages 119-138, July-Dec.

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    More about this item

    Keywords

    human capital; income inequality; parental migration; public education expenditure; tax base erosion;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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