Local public funding of higher education when skilled labor is imperfectly mobile
(2000) International Tax and Public Finance — Vol. 7, n° 3, p. 247-258 (2000)
Files
No attached file found for this publication.
Details
- Authors
- Abstract
- If higher education is publicly funded by local (sub-federal) jurisdictions, while skilled labor is heterogeneous in responding to wage differentials between jurisdictions, the spillovers that result give rise to a disparity between the centralized output-maximizing allocation of resources to higher education and decentralized equilibria. Generally, decentralization leads to under-provision, which can be offset by inter-jurisdictional subsidies based on gross migration flows. But the extent of the discrepancy depends on the local balance of political forces. Indeed, when the welfare of native-born emigrants is highly valued while new immigrants carry little political weight, over-provision in equilibrium is possible.
- Affiliations
Ben-Gurion University of the Negev Department of Economics
Citations
Justman, M., & Thisse, J.-F. (2000). Local public funding of higher education when skilled labor is imperfectly mobile. International Tax and Public Finance, 7(3), 247-258. https://doi.org/10.1023/A:1008705528650 (Original work published 2000)