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Title: Inequality and Education Funding: Theory and Evidence from the U.S. School Districts

Citation Type: Miscellaneous

Publication Year: 2010

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Abstract: We investigate the relationship between inequality and public education fundingin a model of probabilistic voting where the private option is available and votingparticipation diers across income groups. A change in inequality can have oppositeeects at dierent income levels: higher inequality decreases public spending perstudent and increases enrollment in public schools in poor economies, while the op-posite holds in the rich ones. A change in the tax base can also have non-monotoniceects. These theoretical predictions, with support in U.S. school district-leveldata, reconcile previous contradictory results in the political economy literature on redistribution and inequality

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Authors: Arcalean, Calin; Schiopu, Ioana

Publisher: ESADE Business School

Data Collections: IPUMS CPS

Topics: Education, Family and Marriage, Other

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