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Does money buy higher schooling?: Evidence from secondary school track choice in Germany
ARTICLE

Economics of Education Review Volume 27, Number 5 ISSN 0272-7757 Publisher: Elsevier Ltd

Abstract

The German schooling system selects children into different secondary school tracks already at a very early stage in life. School track choice heavily influences choices and opportunities later in life. It has often been observed that secondary schooling achievements display a strong correlation with parental income. We use sibling fixed effects models and information on a natural experiment in order to analyse whether this correlation is due to a causal effect of income or due to unobservable factors that themselves might be correlated across generations. Our main findings suggest that income has no positive causal effect on school choice and that differences between high- and low-income households are driven by unobserved heterogeneity, e.g. differences in motivation or parenting quality.

Citation

Tamm, M. Does money buy higher schooling?: Evidence from secondary school track choice in Germany. Economics of Education Review, 27(5), 536-545. Elsevier Ltd. Retrieved October 14, 2019 from .

This record was imported from Economics of Education Review on January 28, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct: http://dx.doi.org/10.1016/j.econedurev.2007.10.005

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