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Education return and financing : donated affluence as consequence of tuition free study programs in Germany

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Author Info
Hans-Georg Petersen
Markus Kirchner

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Abstract

The paper sheds some light on the education returns in Germany in the post war period. After describing higher education in Germany the current stand of higher education financing within the single states is presented. In six states tuition fees will be introduced in 2007/08 and discussions are going on in even some more. In the second part of the paper an empirical analysis is done using longitudinal data from the German social pension system. The analysis over the whole lifecycle renders results which proof that the higher education advantages are quite remarkable and might be a justification for more intensified financing by tuition fees. But all this has to be embedded into an encompassing strategy of tax and social policy, especially to prevent a strengthened process of social selection, which would be counterproductive for an increased and highly qualified human capital in Germany.

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File URL: http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-26969
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Publisher Info
Paper provided by Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät in its series Finanzwissenschaftliche Diskussionsbeiträge with number 55.

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Date of creation: Jan 2008
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Handle: RePEc:pot:fiwidp:55

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Related research
Keywords: education return; tuition fees; tertiary education; vocational education; human capital; lifetime income; income contingent loans;

Find related papers by JEL classification:
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
I28 - Health, Education, and Welfare - - Education - - - Government Policy
I22 - Health, Education, and Welfare - - Education - - - Educational Finance
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans and Credits
D14 - Microeconomics - - Household Behavior - - - Personal Finance
D1 - Microeconomics - - Household Behavior

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