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Does money buy higher schooling?: Evidence from secondary school track choice in Germany

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  • Tamm, Marcus

Abstract

The German schooling system selects children into different secondary school tracks already at a very early stage in life. School track choice heavily influences choices and opportunities later in life. It has often been observed that secondary schooling achievements display a strong correlation with parental income. We use sibling fixed effects models and information on a natural experiment in order to analyse whether this correlation is due to a causal effect of income or due to unobservable factors that themselves might be correlated across generations. Our main findings suggest that income has no positive causal effect on school choice and that differences between high- and low-income households are driven by unobserved heterogeneity, e.g. differences in motivation or parenting quality.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 27 (2008)
Issue (Month): 5 (October)
Pages: 536-545

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Handle: RePEc:eee:ecoedu:v:27:y:2008:i:5:p:536-545

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  1. Thomas Bauer & Ira Gang, 2001. "Sibling Rivalry in Educational Attainment: The German Case," LABOUR, CEIS, vol. 15(2), pages 237-255, 06.
  2. Flavio Cunha & James J. Heckman & Lance Lochner & Dimitriy V. Masterov, 2005. "Interpreting the Evidence on Life Cycle Skill Formation," NBER Working Papers 11331, National Bureau of Economic Research, Inc.
  3. Francesconi, Marco & Jenkins, Stephen P & Siedler, Thomas, 2005. "Childhood Family Structure and Schooling Outcomes: Evidence for Germany," CEPR Discussion Papers 5362, C.E.P.R. Discussion Papers.
  4. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  5. Miles Corak & Michael Fertig & Marcus Tamm, 2005. "A Portrait of Child Poverty in Germany," Innocenti Working Papers inwopa05/29, UNICEF Innocenti Research Centre.
  6. repec:ese:iserwp:2005-22 is not listed on IDEAS
  7. Christian Dustmann, 2004. "Parental background, secondary school track choice, and wages," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 209-230, April.
  8. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  9. Eric I. Knudsen & James J. Heckman & Judy L. Cameron & Jack P. Shonkoff, 2006. "Economic, Neurobiological and Behavioral Perspectives on Building America's Future Workforce," NBER Working Papers 12298, National Bureau of Economic Research, Inc.
  10. Richard Williams, 2006. "Generalized ordered logit/partial proportional odds models for ordinal dependent variables," Stata Journal, StataCorp LP, vol. 6(1), pages 58-82, March.
  11. Jenkins, Stephen P. & Schluter, Christian, 2002. "The Effect of Family Income During Childhood on Later-Life Attainment: Evidence from Germany," IZA Discussion Papers 604, Institute for the Study of Labor (IZA).
  12. Sylke Schnepf, 2002. "A Sorting Hat that Fails? The transition from primary to secondary school in Germany," Innocenti Working Papers inwopa02/22, UNICEF Innocenti Research Centre.
  13. Thorsten Schneider, 2004. "Der Einfluss des Einkommens der Eltern auf die Schulwahl," Discussion Papers of DIW Berlin 446, DIW Berlin, German Institute for Economic Research.
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  15. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
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Cited by:
  1. Cordero, José Manuel & Prior, Diego & Simancas Rodríguez, Rosa, 2013. "A comparison of public and private schools in Spain using robust nonparametric frontier methods," MPRA Paper 51375, University Library of Munich, Germany.
  2. Schildberg-Hoerisch, Hannah, 2011. "Does parental employment affect children's educational attainment?," Economics of Education Review, Elsevier, vol. 30(6), pages 1456-1467.
  3. Maes, Marjan, 2008. "poverty persistence among belgian elderly: true or spurious?," Working Papers 2008/10, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  4. Heineck, Guido & Wölfel, Oliver, 2010. "Parental Risk Attitudes and Children's Secondary School Track Choice," IZA Discussion Papers 5197, Institute for the Study of Labor (IZA).
  5. Marjan, MAES, 2008. "Poverty persistence among Belgian elderly in the transition from work to retirement : an empirical analysis," Discussion Papers (ECON - Département des Sciences Economiques) 2008042, Université catholique de Louvain, Département des Sciences Economiques.
  6. Riphahn, Regina T. & Trübswetter, Parvati, 2011. "The intergenerational transmission of educational attainment in East and West Germany," IAB Discussion Paper 201104, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  7. repec:ese:iserwp:2008-24 is not listed on IDEAS

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