We study the role of parental wealth for children's educational and occupational outcomes across three types of welfare states and outline a theoretical model that assumes parental wealth to impact offspring's attainment through two mechanisms, wealth's purchasing function and its insurance function. We argue that welfare states can limit the purchasing function of wealth, for instance by providing ...
This paper studies the effect of attending a high-quality secondary school on subsequent educational outcomes. The analysis is based on data from the German Socio-Economic Panel Study in which we observe children when they make their secondary school choice (between ages 10-12) and later when they self-report on their intentions with regard to their further educational path (between ages 16-17). To ...
We investigate second generation migrants and native children at several stages in the German education system to analyze the determinants of the persistent native-migrant gap. One part of the gap can be attributed to differences in socioeconomic background and another part remains unexplained. Faced with this decomposition problem, we apply linear and matching decomposition methods. Accounting for ...
There are strong two-way links between parent and child happiness (life satisfaction), even for 'children' who have grown up, moved to their own home and partnered themselves. German panel evidence shows that transmission of (un)happiness from parents to children is partly due to transmission of values and behaviors known to be associated with happiness (Headey, Wagner and Muffels, 2010, 2012). These ...
The extensive research on the impact of educational attainment on fertility behavior has been expanded by a new dimension. According to these recent findings, not only the level but also the field of education has to be taken into account. The field of education determines a great deal about labor market options and influences opportunities to combine employment and family life. The question this paper ...
We estimate the causal relationship between family size and labour market outcomes for families in low fertility and low female employment regime. Family size is instrumented using twinning and gender composition of the first two children. Among families with at least one child we identify the average causal effect of an additional child on mother's employment to be -7.1 percentage points. However, ...
We assess the relevance of formal education for the productivity of the self-employed and distinguish between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to education between these groups because of different levels of control. We use the German Socio-economic Panel ...
We investigate whether Germans immigrants to the US work in higher-status occupations than they would have had they remained in Germany. We account for potential bias from selective migration. The probability of migration is identified using life-cycle and cohort variation in economic conditions in the US. We also explore whether occupational choices vary for Germans who migrated as children or as ...
In this paper I investigate the causal returns to education for different educational groups in Germany by employing a new method by Klein and Vella (2010) that bases identification on the presence of conditional heteroskedasticity. Compared to IV methods, key advantages of this approach are unbiased estimates in the absence of instruments and parameter interpretation that is not bounded to local average ...
