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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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    References listed on IDEAS

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    6. Lauer, Charlotte, 2001. "Educational attainment: a French-German comparison," ZEW Dokumentationen 01-02, ZEW - Leibniz Centre for European Economic Research.
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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.
    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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