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Luck Or Effort: Perceptions of the Role of Circumstances in Education and Demand for Targeted Spending

Author

Listed:
  • Elisabeth Grewenig

    (Kreditanstalt für Wiederaufbau (KfW))

  • Katharina Wedel

    (ifo Institute, University of Munich)

  • Katharina Werner

    (Business School Pforzheim, ifo Institute)

Abstract

Perceptions about students’ personal responsibility for their own success might have crucial implications for public approval of targeted financial support. Using a survey experiment among the German adult population, we find that information about the correlation of education outcomes and parental background strongly increases the perception that external circumstances determine educational success. These effects persist in a follow-up survey conducted two weeks later. Information also significantly increases private donations to charities supporting students from disadvantaged socio-economic backgrounds but does not affect demand for redistributive education spending by the government. This pattern of results is consistent with differences in the perceived opportunity costs of funds used in both spending decisions.

Suggested Citation

  • Elisabeth Grewenig & Katharina Wedel & Katharina Werner, 2025. "Luck Or Effort: Perceptions of the Role of Circumstances in Education and Demand for Targeted Spending," Rationality and Competition Discussion Paper Series 543, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:543
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    Keywords

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    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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