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Inequality, educational choice, and public school quality in income‐mixing communities

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  • Paolo Melindi‐Ghidi
Abstract
Why, in some urban communities, do rich and poor households cohabit while, in others, we observe sorting by income? Does income inequality impact residential choices and community segregation? To answer these questions, I develop a two‐community general equilibrium framework of school quality, residential choice, and tax decision with probabilistic voting. The model predicts that an equilibrium with income mixing in which households segregate across public schools and low‐ and high‐income households choose to live in the same community might emerge in highly unequal societies. In this particular equilibrium, income‐mixing communities perform lower public school quality than communities populated by middle‐income households. The effect of inequality on the quality of public schooling in the income‐mixing community is ambiguous and depends on the relative endowments of private goods, such as housing, in the two communities.

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  • Paolo Melindi‐Ghidi, 2018. "Inequality, educational choice, and public school quality in income‐mixing communities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(6), pages 914-943, December.
    • Handle: RePEc:bla:jpbect:v:20:y:2018:i:6:p:914-943
    DOI: 10.1111/jpet.12336
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    Cited by:

    1. Majda Benzidia & Michel Lubrano & Paolo Melindi-Ghidi, 2016. "Education Politics, Schooling Choice and Public School Quality: The Impact of Income Polarisation," Working Papers halshs-01405622, HAL.
    2. Lesly Cassin & Paolo Melindi-Ghidi & Fabien Prieur, 2021. "The impact of income inequality on public environmental expenditure with green consumerism," Working Papers 2021.08, FAERE - French Association of Environmental and Resource Economists.
    3. Majda Benzidia & Michel Lubrano & Paolo Melindi-Ghidi, 2024. "Education politics, schooling choice and public school quality: the impact of income polarization," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(6), pages 1640-1668, December.
    4. Lesly Cassin & Paolo Melindi-Ghidi & Fabien Prieur, 2021. "Voting for environmental policy with green consumers: the impact of income inequality," CEE-M Working Papers hal-03146526, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    5. Majda Benzidia & Michel Lubrano & Paolo Melindi-Ghidi, 2024. "Education politics, schooling choice and public school quality: the impact of income polarization," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(6), pages 1640-1668, December.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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