David de la Croix, Matthias Doepke, 21 September 2007

How is the quality of public education affected by the presence of private schools for the rich? Theory and evidence suggest that the link crucially depends on the structure of the political system. A large private education sector can benefit public schools in a broad-based democracy where politicians are responsive to the needs of families using public schools, but leads to disastrous outcomes in a society that is politically dominated by the rich.

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