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Economic follow-up costs of inadequate education: a macroeconomic projection

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  • Marc Piopiunik
  • Ludger Wößmann

Abstract

According to the PISA studies, approximately 20 percent of all 15-year-olds in Germany are poorly educated "risk pupils". In a study of the Ifo Institute, commissioned by the Bertelsmann Foundation, the economic costs that result from this situation are calculated. The follow-up costs of inadequate education amount to approximately 2.8 trillion euros over the lifespan of children born today - more than total German GDP of 2.5 trillion euros. The tremendous scale of this projection underscores the urgency of reforming the German education system.

Suggested Citation

  • Marc Piopiunik & Ludger Wößmann, 2010. "Economic follow-up costs of inadequate education: a macroeconomic projection," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 63(04), pages 24-30, February.
    • Handle: RePEc:ces:ifosdt:v:63:y:2010:i:04:p:24-30
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    References listed on IDEAS

    as
    1. Eric Hanushek & Ludger Woessmann, 2012. "Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation," Journal of Economic Growth, Springer, vol. 17(4), pages 267-321, December.
    2. Ludger Wößmann, 2009. "Educational system, PISA performance and economic growth," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 62(10), pages 23-28, May.
    3. Philippe Aghion & Peter Howitt, 2009. "The Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012634, December.
    4. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
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    Cited by:

    1. Hoffmann, Sarah, 2010. "Schulabbrecher in Deutschland - eine bildungsstatistische Analyse mit aggregierten und Individualdaten," Discussion Papers 71, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General

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