Public Education Inequality and Intergenerational Mobility

38 Pages Posted: 28 Dec 2017 Last revised: 27 Nov 2019

See all articles by James Graham

James Graham

New York University (NYU), Department of Economics

Angela Zheng

New York University (NYU)

Date Written: November 25, 2019

Abstract

Recent work has shown that neighborhoods with better schools tend to have higher house prices. In this paper, I investigate how the link between house prices and school quality affects intergenerational mobility. I build a dynamic heterogeneous agent model where individuals can choose to live in different neighborhoods whose house prices are determined in equilibrium. School quality in each neighborhood comes from property tax revenue. Simulations from the calibrated model show that neighborhoods with worse schools have lower mobility and create poverty traps. I then evaluate policies that can improve mobility such as equal school funding and housing vouchers.

Keywords: intergenerational mobility, neighbourhood choice, education policy

JEL Classification: J24, J62, I24

Suggested Citation

Graham, James and Zheng, Angela, Public Education Inequality and Intergenerational Mobility (November 25, 2019). Available at SSRN: https://ssrn.com/abstract=3092714 or http://dx.doi.org/10.2139/ssrn.3092714

James Graham

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

New York, NY
United States

Angela Zheng (Contact Author)

New York University (NYU) ( email )

Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States

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