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Educational policy and intergenerational mobility.

Tomoaki Kotera1, Ananth Seshadri1

  • 1Department of Economics, University of Wisconsin-Madison, United States.

Review of Economic Dynamics
|November 17, 2018
PubMed
Summary
This summary is machine-generated.

Public school spending distribution significantly impacts intergenerational mobility in the US. More equitable school funding can enhance social mobility, especially when parental influence on child development is lower.

Keywords:
Educational policyHuman capitalIntergenerational mobility

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Area of Science:

  • Economics
  • Education Policy
  • Sociology

Background:

  • Intergenerational mobility varies significantly across US states.
  • Public school finance systems and their spending distributions are potential drivers of this variation.

Purpose of the Study:

  • To model the impact of public school spending distribution on intergenerational mobility.
  • To identify factors contributing to cross-state disparities in social mobility.

Main Methods:

  • Developed a dynamic model of school district voting on per-pupil spending.
  • Integrated median voter outcomes into a human capital accumulation model.
  • Conducted counterfactual simulations to test policy interventions.

Main Results:

  • The model successfully replicates the observed relationship between school spending distribution and intergenerational mobility.
  • Parental human capital's correlation with child's learning ability is a key factor in mobility variation.
  • More equal spending distribution via foundation programs improves mobility, particularly when parental influence is less critical.

Conclusions:

  • Equitable public school finance systems can enhance intergenerational mobility.
  • Policy interventions like foundation programs show promise for improving social mobility.
  • Full state funding may offer limited improvements due to spending constraints.