Economic Gains from Educational Transfers in Kind in Germany

Joachim Frick, Markus Grabka and Olaf Groh-Samberg

Journal of Income Distribution, 2010, vol. 19, issue 3-4, 17-40

Abstract: The aim of this paper is to estimate non-monetary income advantages arising from publicly provided education and to analyze their impact on the income distribution and on economic inequality in Germany. Using representative micro-data from the German Socio-Economic Panel (SOEP) and taking into consideration regional and education-specific variation, the overall result is an expected leveling effect from a simple cross-sectional perspective. However, approximating the accumulating effects over the life course within a regression framework -- and controlling for selectivity arising from having children as potential beneficiaries of educational transfers -- we find evidence of a reinforcement of social inequalities from an intergenerational perspective, especially through public funding to non-compulsory education.

Keywords: education; public transfers; income distribution; economic well-being; SOEP (search for similar items in EconPapers)
JEL-codes: D31 I22 I32 I38 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (4)

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