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Causal Returns to Education: A Survey on Empirical Evidence for Germany

Author

Listed:
  • Flossmann Anton L.

    (Konstanz, Germany)

  • Pohlmeier Winfried

    () (Department of Economics, Box D124, University of Konstanz, D-78457 Konstanz, Germany)

Abstract

This paper surveys the empirical evidence on causal effects of education on earnings for Germany and compares alternative studies in the light of their underlying identifying assumptions. We work out the different assumptions taken by various studies, which lead to rather different interpretations of the estimated causal effect. In particular, we are interested in the question to what extend causal return estimates are informative regarding educational policy advice. Despite the substantial methodological differences, we have to conclude that the empirical findings for Germany are quite robust and do not deviate substantially from each other. This also holds for the few studies which rely on ignorability conditions, regardless of whether they use educational attainment as a continuous treatment variable or as a discrete treatment indicator. Own estimates based on the matching approach indicate that the selection into upper secondary schooling is suboptimal

Suggested Citation

  • Flossmann Anton L. & Pohlmeier Winfried, 2006. "Causal Returns to Education: A Survey on Empirical Evidence for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(1), pages 6-23, February.
  • Handle: RePEc:jns:jbstat:v:226:y:2006:i:1:p:6-23
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    References listed on IDEAS

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    Cited by:

    1. Heineck Guido & Riphahn Regina T., 2009. "Intergenerational Transmission of Educational Attainment in Germany – The Last Five Decades," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 36-60.
    2. Steffen Osterloh, 2008. "Accuracy and Properties of German Business Cycle Forecasts," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 54(1), pages 27-57.
    3. Timmermann, Dieter, 2010. "Alternativen der Hochschulfinanzierung," Arbeitspapiere 211, Hans-Böckler-Stiftung, Düsseldorf.
    4. Friedhelm PFEIFFER & Winfried POHLMEIER, 2011. "Causal Returns to Schooling and Individual Heterogeneity," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, pages 29-41.
    5. Pfeiffer, Friedhelm & Reuß, Karsten, 2008. "Ungleichheit und die differentiellen Erträge frühkindlicher Bildungsinvestitionen im Lebenszyklus," ZEW Discussion Papers 08-001, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Kathrin Göggel, 2007. "Sinkende Bildungsrenditen durch Bildungsreformen?: Evidenz aus Mikrozensus und SOEP," SOEPpapers on Multidisciplinary Panel Data Research 11, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Pfeiffer, Friedhelm & Reuß, Karsten, 2007. "Age-dependent Skill Formation and Returns to Education," ZEW Discussion Papers 07-015, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Benjamin Balsmeier & Heiko Peters, 2008. "Family Background or the Characteristics of Children: What Determines High School Success in Germany?," SOEPpapers on Multidisciplinary Panel Data Research 138, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. Michael Gebel & Friedhelm Pfeiffer, 2010. "Educational Expansion and Its Heterogeneous Returns for Wage Workers," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(1), pages 19-42.
    10. Scharfenkamp Katrin, 2016. "It’s About Connections – How the Economic Network of the German Federal Government Affects the Top Earners’ Average Income Tax Rate," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 427-453.
    11. Oliver Himmler & Robert Schwager, 2013. "Double Standards in Educational Standards – Do Schools with a Disadvantaged Student Body Grade More Leniently?," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 166-189, May.
    12. Pfeiffer Friedhelm & Stichnoth Holger, 2015. "Fiskalische und individuelle Bildungsrenditen – aktuelle Befunde für Deutschland," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 393-411, December.
    13. Uysal, S. Derya, 2013. "Doubly Robust Estimation of Causal Effects with Multivalued Treatments," Economics Series 297, Institute for Advanced Studies.
    14. Pfeiffer, Friedhelm & Reuß, Karsten, 2008. "Age-dependent skill formation and returns to education," Labour Economics, Elsevier, vol. 15(4), pages 631-646, August.
    15. Biewen, Martin & Tapalaga, Madalina, 2017. "Early Tracking, Academic vs. Vocational Training and the Value of 'Second Chance' Options," IZA Discussion Papers 11080, Institute for the Study of Labor (IZA).
    16. Cornelissen Thomas & Jirjahn Uwe & Tsertsvadze Georgi, 2008. "Parental Background and Earnings: German Evidence on Direct and Indirect Relationships," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, pages 554-572.

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