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Economic Gains from Publicly Provided Education in Germany

Author

Listed:
  • Joachim R. Frick
  • Markus M. Grabka
  • Olaf Groh-Samberg

Abstract

The aim of this paper is to estimate income advantages arising from publicly provided educa-tion and to analyse their impact on the income distribution in Germany. Using representative micro-data from the SOEP and considering regional and education-specific variation, from a cross-sectional perspective the overall result is the expected levelling effect. When estimating the effects of accumulated educational transfers over the life course within a regression framework, however, and controlling for selectivity of households with children as potential beneficiaries of educational transfers, we find evidence that social inequalities are increasing from an intergenerational perspective, reinforced in particular by public transfers for non-compulsory education, thus negating any social equalisation effects achieved within the com-pulsory education framework.

Suggested Citation

  • Joachim R. Frick & Markus M. Grabka & Olaf Groh-Samberg, 2007. "Economic Gains from Publicly Provided Education in Germany," Discussion Papers of DIW Berlin 709, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp709
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    References listed on IDEAS

    as
    1. Elke Holst & Dean R. Lillard & Thomas A. DiPrete, 2001. "Proceedings of the 2000 Fourth International Conference of German Socio-Economic Panel Study Users (GSOEP 2000): Editorial Introduction," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 5-6.
    2. Spieß, C. Katharina & Büchel, Felix & Wagner, Gert G., 2003. "Children's School Placement in Germany: Does Kindergarten Attendance Matter?," IZA Discussion Papers 722, Institute of Labor Economics (IZA).
    3. SOEP Group, 2001. "The German Socio-Economic Panel (GSOEP) after More than 15 Years: Overview," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 7-14.
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    Cited by:

    1. Antoni, Manfred, 2011. "Lifelong learning inequality? The relevance of family background for on-the-job training," IAB-Discussion Paper 201109, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Joachim Frick & Kristina Krell, 2011. "Einkommensmessungen in Haushaltspanelstudien für Deutschland: Ein Vergleich von EU-SILC und SOEP," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 5(3), pages 221-248, December.
    3. Gabrielle Demange & Robert Fenge & Silke Uebelmesser, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo Group, vol. 54(2), pages 248-276.

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    More about this item

    Keywords

    Education; Public Transfers; Income Distribution; Economic Wellbeing; SOEP;
    All these keywords.

    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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