ECON 151 Lecture Notes - Lecture 31: Parental Investment, Public Good, Externality
22 Nov 2020
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Becker parental investment model: hk theory may predict very unequal society; Public investment may be needed to balance out initial inequality. Due to rich parents being educated and passing down education (accumulation of wealth and education in the same hands) The more local, the better the accountability. But the more local, the higher the inequality schools in richer district are the best. Before 1970, primary education was financed through property tax; In california, since 1971 (serrano v. priest), supreme court orders that public schools get same resources across districts; 1978, california decision to reduce district level funding state become the first source of funding. 2013, local control funding formula: increase funding for school with large concentration of high-need students (english learners or reduced/full free meal students) California decision impacted other states: 28/51 now have introduced school finance reforms. California invests less in primary education b/c more in higher edu (ucs) Local versus federal - primary school financing (usa)
