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Economic Gains from Educational Transfers in Kind in Germany

Listed author(s):
  • Joachim R. Frick

    (DIW Berlin, TU Berlin, IZA Bonn)

  • Markus M. Grabka

    (DIW Berlin, TU Berlin)

  • Olaf Groh-Samberg


    (BIGSSS, University of Bremen, DIW Berlin)

The aim of this paper is to estimate non-monetary income advantages arising from publicly provided education and to analyze their impact on the income distribution and on economic inequality in Germany. Using representative micro-data from the German Socio-Economic Panel (SOEP) and taking into consideration regional and education-specific variation, the overall result is an expected leveling effect from a simple cross-sectional perspective. However, approximating the accumulating effects over the life course within a regression framework -- and controlling for selectivity arising from having children as potential beneficiaries of educational transfers -- we find evidence of a reinforcement of social inequalities from an intergenerational perspective, especially through public funding to non-compulsory education.

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Article provided by Journal of Income Distribution in its journal Journal of Income Distribution.

Volume (Year): 19 (2010)
Issue (Month): 3-4 (September-December)
Pages: 17-40

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Handle: RePEc:jid:journl:y:2010:v:19:i:3-4:p:17-40
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