Immigration and the public-private school choice

This paper empirically analyzes the effects of immigration on the schooling decisions of natives. We employ household-level data for Spain for years 2000-2015, a period characterized by high economic growth and large immigration that was halted by a long and severe recession. Our estimates reveal that increases in immigrant density at the school level triggered an important native flight from tuition-free, public schools toward private ones. We also find strong evidence of cream-skimming as more educated native households are the most likely to switch to private schools in response to immigration. Furthermore, we find that immigration leads to higher student-teacher ratios in public schools. We conclude that our results are consistent with the predictions of a political-economy model of school choice.