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Economic Gains from Publicly Provided Education in Germany

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Author Info
Joachim R. Frick () (SOEP, DIW Berlin, TU Berlin and IZA)
Markus M. Grabka () (SOEP, DIW Berlin)
Olaf Groh-Samberg () (SOEP, DIW Berlin)

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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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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp2911.pdf
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Publisher 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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Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
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Web page: http://www.iza.org

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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
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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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References listed on IDEAS
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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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This page was last updated on 2008-7-21.


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