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Income from Educational Attainment throughout Life: Current Calculations for Germany

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  • Marc Piopiunik
  • Franziska Kugler
  • Ludger Wößmann
  • Franziska Pfaehler

Abstract

What are the results of a higher educational attainment? When undergoing an apprenticeship, income losses in comparison to an unskilled job are accepted with the hopes of a higher income later on. This applies even more so to university studies: instead of working full-time, income is foregone for several years in the hope of achieving a higher income afterwards. But is the subsequent increased income sufficient to compensate for the initial losses in earnings? What is the situation for second-chance education? And is this worth more than a master's degree? These questions were addressed by the ifo Center for Educational Economics in a project commissioned by Union Investment. The most important results are summarised in this article. The results confirm that investing in higher education is worthwhile economically. A higher degree is associated with higher monthly income, with a lower risk of becoming unemployed and a total of six-digit growth in lifetime earnings. The income of persons with an apprenticeship is 143,000 euros higher over a lifetime than that for persons without vocational training. For those with a master qualification or technician certification, the lifetime earnings are 129,000 euros higher than for persons with only a completed apprenticeship; in the case of technical university graduates, the figure is 267,000 euros, while for university graduates it is 387,000 euros. There are also large differences, however, according to region, gender and, in particular, the field of specialisation.

Suggested Citation

  • Marc Piopiunik & Franziska Kugler & Ludger Wößmann & Franziska Pfaehler, 2017. "Income from Educational Attainment throughout Life: Current Calculations for Germany," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(07), pages 19-30, April.
    • Handle: RePEc:ces:ifosdt:v:70:y:2017:i:07:p:19-30
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    References listed on IDEAS

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    1. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    2. Hanushek, Eric A. & Woessmann, Ludger, 2015. "The Knowledge Capital of Nations: Education and the Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262029170, December.
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    6. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
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    Citations

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    Cited by:

    1. Lukas Kiessling & Pia Pinger & Philipp Seegers & Jan Bergerhoff, 2023. "Gender Differences in Wage Expectations and Negotiation," ECONtribute Discussion Papers Series 268, University of Bonn and University of Cologne, Germany.
    2. Lukas Kiessling & Pia Pinger & Philipp Seegers & Jan Bergerhoff, 2024. "Gender Differences in Wage Expectations and Negotiation," CRC TR 224 Discussion Paper Series crctr224_2024_496, University of Bonn and University of Mannheim, Germany.
    3. Sven Resnjanskij & Jens Ruhose & Simon Wiederhold & Ludger Woessmann & Katharina Wedel, 2024. "Can Mentoring Alleviate Family Disadvantage in Adolescence? A Field Experiment to Improve Labor Market Prospects," Journal of Political Economy, University of Chicago Press, vol. 132(3), pages 1013-1062.
    4. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).
    5. Lukas Kiessling & Pia Pinger & Philipp Seegers & Jan Bergerhoff, 2023. "Gender Differences in Wage Expectations and Negotiation," CESifo Working Paper Series 10838, CESifo.
    6. Fabian Koenings, 2021. "Can there be too much information? Heterogeneous responses to information on benefits from language proficiency," Jena Economics Research Papers 2021-016, Friedrich-Schiller-University Jena.
    7. Laura Ehrmantraut & Pia Pinger & Renske Stans, 2020. "Bildungsrendite: Was erhoffen sich Studierende von ihrem Abschluss?," ECONtribute Policy Brief Series 012, University of Bonn and University of Cologne, Germany.
    8. Lukas Kiessling & Pia Pinger & Philipp Seegers & Jan Bergerhoff, 2019. "Gender Differences in Wage Expectations: Sorting, Children, and Negotiation Styles," CESifo Working Paper Series 7827, CESifo.
    9. Ludger Wößmann, 2020. "Follow-up Costs of Not Learning: What We Can Learn from Research on Coronavirus-Related School Closures," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(06), pages 38-44, June.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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