Conventional empirical studies on the returns to schooling assume that the return for an additional year of schooling is the same across individuals. In this project we relaxed this assumption by developing and applying new microeconometric methods that account for heterogeneous returns to schooling and identify the causal effects of schooling. Policy measures that change the individual´s cost of schooling lead to a change in the composition of individuals who invest in schooling. Hence we developed microeconometric tools to identify the causal effects of these policy measures. According to our studies the average returns to education is 6 percent in Germany, with a slightly increasing tendency in recent years. The project was part of the DFG research group on Heterogeneous Labour: Positive and Normative Aspects of the Skill Structure of Labor a cooperation of the University of Konstanz and the ZEW Mannheim. Three students finished their PhD thesis in the project (Anton Flossmann, Markus Jochmann, Michael Maier).
Selected Publications
Articles in Refereed Journals
Eisenhauer, Philipp and Friedhelm Pfeiffer (2008), Assessing Intergenerational Earnings Persistence Among German Workers, Journal of Labour Market Research 2&3, 119-137.
Gernandt, Johannes and Friedhelm Pfeiffer (2007), Rising Wage Inequality in Germany, Journal of Economics and Statistics 227 (4), 358-380.
Göggel, Kathrin, Johannes Gräb and Friedhelm Pfeiffer (2007), Selbständigkeit in Europa 1991 - 2003: Empirische Evidenz mit Länderdaten, Journal of Economics and Statistics 227/2, 153-167.
Ludwig, Volker and Friedhelm Pfeiffer (2006), Abschreibungsraten allgemeiner und beruflicher Ausbildungsinhalte. Empirische Evidenz auf Basis subjektiver Einschätzungen, Journal of Economics and Statistics 226 (3), 260-284.
Pfeiffer, Friedhelm and Henrik Winterhager (2006), Selektivität und direkte Wirkungen von Vermittlungsgutscheinen: Empirische Befunde aus der Einführungsphase, Perspektiven der Wirtschaftspolitik 7 (3) , 399-419.
Pfeiffer, Friedhelm and Henrik Winterhager (2006), Vermittlungsgutscheine und Beauftragungen Dritter im Vergleich, Journal for Labour Market Research 39 (3&4), 425-445.
Flossmann, Anton and Winfried Pohlmeier (2006), Causal Returns to education: A Survey on Empirical Evidence for Germany, Jahrbücher für Nationalökonomie und Statistik 226 (1), 6-23.
Monographs, Contributions to Edited Volumes
Pfeiffer, Friedhelm and Karsten Reuß (2008), Fähigkeiten und Mobilität – Ökonomische Konsequenzen für das Humankapital in Ostdeutschland, in: K. Friedrich und A. Schultz forum ifl, LLL:citation.label.volume 8 43-50.
Jochmann, M. and W. Pohlmeier (2004), Der kausale Effekt von Bildungsinvestitionen, in: W. Franz, H. J. Ramser, M. Stadler (Hrsg.) Schriftenreihe des wirtschaftswissenschaftlichen Seminars Ottobeuren,, Mohr Siebeck, Tübingen,.
Jochmann, M. and W. Pohlmeier (2003), The Causal Effect of Overqualification on Earnings: Evidence from a Bayesian Approach, in: F. Büchel, A. de Grip, A. Mertens (Hrsg.) Edward Elgar, Cheltenham, 93-108.
Maier, M., Friedhelm Pfeiffer and W. Pohlmeier (2003), Overeducation and Individual Heterogeneity, in: F. Büchel, A. de Grip, A. Mertens (Hrsg.) Edward Elgar, Cheltenham, 133-152.
Discussion and Working Papers
Gernandt, Johannes and Friedhelm Pfeiffer (2008), Wage Convergence and Inequality after Unification: (East) Germany in Transition, ZEW Discussion Paper No. 08-022, Mannheim. Download
Aldashev, Alisher, Johannes Gernandt and Stephan L. Thomsen (2007), Language Usage, Participation, Employment and Earnings, FEMM Working Paper No. 18, Magdeburg. Download
Gebel, Michael and Friedhelm Pfeiffer (2007), Educational Expansion and its Heterogeneous Returns for Wage Workers, ZEW Discussion Paper No. 07-010, Mannheim. Download
Gernandt, Johannes, Michael Maier, Friedhelm Pfeiffer and Julie Rat-Wirtzler (2006), Distributional Effects of the High School Degree in Germany, ZEW Discussion Paper No. 06-088, Mannheim. Download
Gernandt, Johannes and Friedhelm Pfeiffer (2006), Rising Wage Inequality in Germany, ZEW Discussion Paper No. 06-019, Mannheim. Download
Maier, M. and A. Kuckulenz (2005), Heterogeneous Returns to Training. An Analysis with German Data Using Local Instrumental Variables, unveröffentlichtes Diskussionspapier,, ZEW.
Jochmann, M. (2003), Semiparametric Bayesian Inference for Count Data Treatment Models, unveröffentlichtes Diskussionspapier, Universität Konstanz.
Allowance
Deutsche Forschungsgemeinschaft, Bonn, DE
Project duration
01.05.2002 - 30.06.2008
Contact
Project members
Winfried Pohlmeier
(Coordinator)
PD Dr. Friedhelm Pfeiffer
(Coordinator)
Dr. Alisher Aldashev
Anton Flossmann
Dr. Johannes Gernandt
Michael Maier
Departments
Cooperation partner
Prof. Jörn-Steffen Pischke, Ph.D., London School of Economics
Prof. Dr. Michael Lechner, Universität St. Gallen, CH
Prof. Dr. Luc Bauwens, Université Catholique Louvain