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Distributional effects of the high school degree in Germany

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  • Gernandt, Johannes
  • Maier, Michael
  • Pfeiffer, Friedhelm
  • Rat-Wirtzler, Julie

Abstract

This paper investigates the impact of a high school degree on the wage distribution in the period from 1984 to 2004 in Germany. In that period the share of male workers with a high school degree increased from 16 to 25 percent. An econometric evaluation estimator is used to analyze quantile treatment effects for the whole population of male workers and for the subpopulation of workers with a high school degree. It turns out that the impact of a high school degree on the wage distribution for all workers is positive, whereas its impact on the wage distribution of the workers with a high school degree does statistically not differ from zero. This suggests that the selection of students into grammer schools might have been too restrictive. For more workers higher education would have raised their productivity and wages. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 06-88.

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Date of creation: 2006
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Handle: RePEc:zbw:zewdip:5481

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Keywords: Economic returns to secondary education; econometric evaluation; quantile treatment effects; educational expansion;

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References

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  1. Christian Dustmann, 2004. "Parental background, secondary school track choice, and wages," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 209-230, April.
  2. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2004. "Evaluating the Impact of Education on Earnings in the UK: Models, Methods and Results from the NCDS," CEE Discussion Papers, Centre for the Economics of Education, LSE 0047, Centre for the Economics of Education, LSE.
  3. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, American Economic Association, vol. 96(2), pages 189-194, May.
  4. Anton L. Flossmann & Winfried Pohlmeier, 2006. "Casual Returns to Education: A Survey on Empirical Evidence for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(1), pages 6-23, January.
  5. Gernandt, Johannes & Pfeiffer, Friedhelm, 2006. "Rising Wage Inequality in Germany," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 06-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Cunha, Flavio & Heckman, James, 2008. "A New Framework For The Analysis Of Inequality," Macroeconomic Dynamics, Cambridge University Press, Cambridge University Press, vol. 12(S2), pages 315-354, September.
  7. Ammermüller, Andreas & Pischke, Jörn-Steffen, 2006. "Peer Effects in European Primary Schools: Evidence from PIRLS," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 06-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Angrist, Joshua, 2003. "Treatment Effect Heterogeneity in Theory and Practice," IZA Discussion Papers 851, Institute for the Study of Labor (IZA).
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  10. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(2), pages 235-270, April.
  11. Philip Oreopoulos, 2006. "Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter," American Economic Review, American Economic Association, American Economic Association, vol. 96(1), pages 152-175, March.
  12. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2005. "Evaluating the effect of education on earnings: models, methods and results from the National Child Development Survey," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 473-512.
  13. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, Econometric Society, vol. 45(1), pages 1-22, January.
  14. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," NBER Technical Working Papers 0251, National Bureau of Economic Research, Inc.
  15. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, Econometric Society, vol. 69(5), pages 1127-60, September.
  16. Sergio Firpo, 2004. "Efficient Semiparametric Estimation of Quantile Treatment Effects," Econometric Society 2004 North American Summer Meetings, Econometric Society 605, Econometric Society.
  17. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 33-50, January.
  18. Victor Chernozhukov & Christian Hansen, 2005. "An IV Model of Quantile Treatment Effects," Econometrica, Econometric Society, Econometric Society, vol. 73(1), pages 245-261, 01.
  19. Volker Ludwig & Friedhelm Pfeiffer, 2006. "Abschreibungsraten allgemeiner und beruflicher Ausbildungsinhalte - empirische Evidenz auf Basis subjektiver Einschätzungen," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(3), pages 260-284, May.
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