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A Model of Educational Attainment: Application to the German Case

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  • Lauer, Charlotte

Abstract

This paper aims at formulating a theoretical model of educational attainment which is directly implementable empirically. The conceptual frame-work relies on the human capital theory, where individuals weigh the costs and the returns of education to decide on the optimal amount of education they want to invest in. In an extension of the model, the educational process is de- composed into two stages: achievement at school and post-school achievement. The same conceptual framework applies at both stages, but a correlation is permitted between them. Empirically, this boils down to estimate a multivariate ordered probit model. An illustration based on German data shows how this model functions in practice. Thus, the model confers an economic foundation on the empirical estimation of the impact of certain factors on educational outcomes.

Suggested Citation

  • Lauer, Charlotte, 2002. "A Model of Educational Attainment: Application to the German Case," ZEW Discussion Papers 02-06, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:891
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    5. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    6. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    7. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Intergenerational Support and the Life-Cycle Incomes of Young Men and Their Parents: Human Capital Investments, Coresidence, and Intergenerational Financial Transfers," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 84-112, January.
    8. John Ermisch & Marco Francesconi, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-156, May.
    9. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
    10. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    11. Lauer, Charlotte, 2001. "Educational attainment: a French-German comparison," ZEW Dokumentationen 01-02, ZEW - Leibniz Centre for European Economic Research.
    12. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-156, May.
    13. Taubman, Paul, 1976. "The Determinants of Earnings: Genetics, Family, and Other Environments; A Study of White Male Twins," American Economic Review, American Economic Association, vol. 66(5), pages 858-870, December.
    14. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts," NBER Working Papers 6385, National Bureau of Economic Research, Inc.
    15. Heckman, James J, 1976. "A Life-Cycle Model of Earnings, Learning, and Consumption," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 11-44, August.
    16. Kodde, David A., 1988. "Unemployment expectations and human capital formation," European Economic Review, Elsevier, vol. 32(8), pages 1645-1660, October.
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    Cited by:

    1. Kuckulenz Anja & Maier Michael, 2006. "Heterogeneous Returns to Training: An Analysis with German Data Using Local Instrumental Variables," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(1), pages 24-40, February.
    2. Lauer, Charlotte, 2003. "Family background, cohort and education: A French-German comparison based on a multivariate ordered probit model of educational attainment," Labour Economics, Elsevier, vol. 10(2), pages 231-251, April.
    3. Ammermüller, Andreas & Weber, Andrea M. & Westerheide, Peter, 2005. "Die Entwicklung und Verteilung des Vermögens privater Haushalte unter besonderer Berücksichtigung des Produktivvermögens (Aktenzeichen 534 - 52061 -17): Abschlussbericht zum Forschungsauftrag des Bund," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 111442, September.
    4. Lauer, Charlotte, 2002. "Family background, cohort and education: A French-German comparison," ZEW Discussion Papers 02-12, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Education; Economic modelling; Multivariate ordered probit;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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