Differential fertility in school finance policy design impacts societal inequality.
The article discusses how different fertility rates between rich and poor families impact education policies. The researchers created a model to show how parents decide on the number of children, invest in their education, and plan for college expenses. They found that not considering fertility differences can underestimate the importance of financial constraints in society. The study also shows that the effectiveness of education subsidies depends on whether they target basic education or college education, based on the fertility rate gap.