Article 2022

Accounting for dropout risk and upgrading in educational choices: new evidence for lifetime returns in Germany

ZA
Zühlke, Anne
 KP
Kugler, Philipp
 HA
Hackenberger, Armin
 BT
Brändle, Tobias
Education Economics
Journal · Vol. 30 · Issue 6 · pp. 574-589
Abstract

We analyse the economic returns in lifetime labour income of various educational paths in Germany. Using recent data, we calculate cumulative labour earnings at different ages and for different educational paths while controlling the parental background of individuals. We find that after the age of 55, lifetime labour income is higher for individuals with a university degree compared to individuals with a vocational degree. Considering the risk of dropout and the possibility of educational upgrading, individuals who start with a vocational training after their school degree do not earn less than individuals who start with university studies. © 2021 Informa UK Limited, trading as Taylor & Francis Group.

Keywords

Author Keywords

Apprenticeship training Returns to education College dropout educational upgrading lifetime income NEPS-SC6-ADIAB

Index Keywords

training risk factor Vocational education university sector Germany comparative study returns to education educational attainment income
Author Affiliations
Institut für Angewandte Wirtschaftsforschung, Tubingen, Germany
Funding & Acknowledgements
No funding information
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