Public Education Inequality and Intergenerational Mobility

43 Pages Posted: 28 Dec 2017 Last revised: 12 Oct 2020

See all articles by Angela Zheng

Angela Zheng

New York University (NYU); McMaster University - Faculty of Social Sciences

James Graham

New York University (NYU), Department of Economics

Date Written: September 20, 2020

Abstract

Public school funding depends heavily on local property tax revenue. Consequently, low-income households have limited access to quality education in neighborhoods with high house prices. In a dynamic life-cycle model with neighborhood choice and endogenous local school quality, we show that this property tax funding mechanism reduces intergenerational mobility and accounts for the spatial correlation between house prices and mobility. A housing voucher experiment improves access to schools, with benefits that can last for multiple generations. Additionally, a policy that redistributes property tax revenues equally across schools improves mobility and welfare. However, the benefits can take generations to be realized.

Keywords: intergenerational mobility, neighbourhood choice, education policy

JEL Classification: J24, J62, I24

Suggested Citation

Zheng, Angela and Graham, James, Public Education Inequality and Intergenerational Mobility (September 20, 2020). Available at SSRN: https://ssrn.com/abstract=3092714 or http://dx.doi.org/10.2139/ssrn.3092714

Angela Zheng (Contact Author)

New York University (NYU)

NY
United States

McMaster University - Faculty of Social Sciences ( email )

Canada

James Graham

New York University (NYU), Department of Economics ( email )

New York, NY
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
220
Abstract Views
1,120
rank
157,644
PlumX Metrics