To segregate or to integrate: education politics and democracy

David de la Croix and Matthias Doepke

No 2003082, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: In most democracies, the majority of education expenditures is financed by the government. In non-democracies, we observe a wide variation in the mix of public and private funding of education. In addition, countries with high inequality tend to rely more heavily on private schooling. We develop a theory which integrates private decision on education and fertility with voting on public education expenditures. The theory is able to account for the facts mentioned above. Countries with high inequality exhibit more private education expenditures since rich people opt out of the public system. In non-democracies, concentrationof political power leads to multiple equilibria in the determination of public education spending.

Keywords: education funding; inequality; voting; political power; segregation (search for similar items in EconPapers)
JEL-codes: D72 E62 H42 I21 (search for similar items in EconPapers)
Date: 2003-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2003082

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