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Economic Gains from Publicly Provided Education in Germany

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Author Info
Joachim R. Frick
Markus M. Grabka
Olaf Groh-Samberg

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Abstract

The aim of this paper is to estimate income advantages arising from publicly provided educa-tion and to analyse their impact on the income distribution in Germany. Using representative micro-data from the SOEP and considering regional and education-specific variation, from a cross-sectional perspective the overall result is the expected levelling effect. When estimating the effects of accumulated educational transfers over the life course within a regression framework, however, and controlling for selectivity of households with children as potential beneficiaries of educational transfers, we find evidence that social inequalities are increasing from an intergenerational perspective, reinforced in particular by public transfers for non-compulsory education, thus negating any social equalisation effects achieved within the com-pulsory education framework.

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Publisher Info
Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 709.

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Length: 40 p.
Date of creation: 2007
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Handle: RePEc:diw:diwwpp:dp709

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Related research
Keywords: Education Public Transfers Income Distribution Economic Wellbeing SOEP

Other versions of this item:

Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

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  1. Spiess, C. Katharina & Büchel, Felix & Wagner, Gert G., 2003. "Children's School Placement in Germany: Does Kindergarten Attendance Matter?," IZA Discussion Papers 722, Institute for the Study of Labor (IZA). [Downloadable!]
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