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Accounting for dropout risk and upgrading in educational choices: new evidence for lifetime returns in Germany

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  • Anne Zühlke
  • Philipp Kugler
  • Armin Hackenberger
  • Tobias Brändle

Abstract

We analyse the economic returns in lifetime labour income of various educational paths in Germany. Using recent data, we calculate cumulative labour earnings at different ages and for different educational paths while controlling the parental background of individuals. We find that after the age of 55, lifetime labour income is higher for individuals with a university degree compared to individuals with a vocational degree. Considering the risk of dropout and the possibility of educational upgrading, individuals who start with a vocational training after their school degree do not earn less than individuals who start with university studies.

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  • Anne Zühlke & Philipp Kugler & Armin Hackenberger & Tobias Brändle, 2022. "Accounting for dropout risk and upgrading in educational choices: new evidence for lifetime returns in Germany," Education Economics, Taylor & Francis Journals, vol. 30(6), pages 574-589, November.
    • Handle: RePEc:taf:edecon:v:30:y:2022:i:6:p:574-589
    DOI: 10.1080/09645292.2021.2013446
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