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Public versus Private Education when Differential Fertility Matters

Author

Listed:
  • David de la Croix

    (FNRS and UCL)

  • Matthias Doepke

    (UCLA)

Abstract
We assess the merits of different education systems in a framework that accounts for the joint decision problem of parents regarding fertility and education. Specifically, we compare the implications of a public and a private schooing regime for economic growth and inequality; We find that private schooling leads to higher growth when there is little inequality in human capital endowments across families. In contrast, when inequality is high, public education yields higher growth by reducing fertility differentials. In addition, public schooling leads to income convergence, while private schooling can result in ever increasing inequality. Our analysis highlights the importance of accounting for endogenous fertility differentials when analyzing educational policies.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • David de la Croix & Matthias Doepke, 2002. "Public versus Private Education when Differential Fertility Matters," UCLA Economics Working Papers 816, UCLA Department of Economics.
    • Handle: RePEc:cla:uclawp:816
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    References listed on IDEAS

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