Public Education for the Children Left Behind

Camacho Pérez, Maria del Carmen;Shen, I-Ling
(2010) , 32 pages

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Authors
  • Camacho Pérez, Maria del CarmenUCLouvain
    Author
  • Shen, I-LingUCLouvain
    Author
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 inequality.
Affiliations
  • Institution iconUCLouvainSSH/IMAQ/IRES - Institut de recherches économiques et sociales
  • Institution iconUCLouvainSSH/IMAQ/IRES - Institut de recherches économiques et sociales

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Camacho Pérez, M. d. C., & Shen, I.-L. (2010). Public Education for the Children Left Behind (IRES Discussion papers 2010006). https://hdl.handle.net/2078.5/250722