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Economic Gains from Publicly Provided Education in Germany

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Author Info

  • Frick, Joachim R.

    (DIW Berlin)

  • Grabka, Markus M.

    ()
    (DIW Berlin)

  • Groh-Samberg, Olaf

    ()
    (DIW Berlin)

Abstract

The aim of this paper is to estimate income advantages arising from publicly provided education 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 compulsory education framework.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2911.

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Length: 43 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2911

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Keywords: education; public transfers; income distribution; economic wellbeing; SOEP;

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References

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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).
  2. Elke Holst & Dean R. Lillard & Thomas A. DiPrete, 2001. "Proceedings of the 2000 Fourth International Conference of German Socio-Economic Panel Study Users (GSOEP 2000): Editorial Introduction," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 5-6.
  3. SOEP Group, 2001. "The German Socio-Economic Panel (GSOEP) after More than 15 Years: Overview," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 7-14.
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Cited by:
  1. Joachim R. Frick & Kristina Krell, 2009. "Einkommensmessungen in Haushaltspanelstudien für Deutschland: ein Vergleich von EU-SILC und SOEP," SOEPpapers on Multidisciplinary Panel Data Research 237, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Demange, Gabrielle & Fenge, Robert & Uebelmesser, Silke, 2008. "The Provision of Higher Education in a Global World - Analysis and Policy Implications," CEPREMAP Working Papers (Docweb) 0806, CEPREMAP.
  3. Antoni, Manfred, 2011. "Lifelong learning inequality? The relevance of family background for on-the-job training," IAB Discussion Paper 201109, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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