Reshaping the schooling system: The role of immigration |
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Authors: | Davide Dottori Fernanda Estevan I-Ling Shen |
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Institution: | 1. IRES and Department of Economics, Université catholique de Louvain, Belgium;2. Public Debt Division, Central Bank Operations Department, Banca d?Italia, Italy;3. Department of Economics, University of Ottawa, Canada;4. Institute for the Study of Labor (IZA), Bonn, Germany;5. The Milken Institute, United States |
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Abstract: | This paper studies how the schooling system may be impacted by the number and skill type of immigrants. When the number of low-skilled immigrants is large, the education regime tends to become segregated. Wealthy locals are more likely to choose private schools and vote for a lower tax rate to finance public education. In contrast, high-skilled immigrants tend to reinforce the public system. The optimal immigration policy is highly skill-biased. The admission of high-skilled immigrants expedites redistribution toward the less-skilled local households through both a stronger fiscal support for public education and a reduction in the skill wage premium. |
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Keywords: | D72 H42 H52 I21 O15 |
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