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Economic Gains from Educational Transfers in Kind in Germany


  • 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.

Suggested Citation

  • Joachim R. Frick & Markus M. Grabka & Olaf Groh-Samberg, 2010. "Economic Gains from Educational Transfers in Kind in Germany," Journal of Income Distribution, Journal of Income Distribution, vol. 19(3-4), pages 17-40, September.
  • Handle: RePEc:jid:journl:y:2010:v:19:i:3-4:p:17-40

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    References listed on IDEAS

    1. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
    3. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    4. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
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    Cited by:

    1. Stockhausen, Maximilian, 2016. "The Impact of Private and Public Childcare Provision on the Distribution of Children's Incomes in Germany," Annual Conference 2016 (Augsburg): Demographic Change 145638, Verein für Socialpolitik / German Economic Association.
    2. Maximilian Stockhausen, 2017. "The Distribution of Economic Resources to Children in Germany," SOEPpapers on Multidisciplinary Panel Data Research 901, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Frick, Joachim R. & Grabka, Markus M. & Groh-Samberg, Olaf, 2012. "The Impact of Home Production on Economic Inequality in Germany," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1143-1169.

    More about this item


    education; public transfers; income distribution; economic well-being; SOEP;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty


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