Skip to main content

Educational Returns Over the Life Course

  • Chapter
  • First Online:
Education as a Lifelong Process

Part of the book series: Edition ZfE ((EZFE,volume 3))

Abstract

Pillar 5 of the German National Educational Panel Study (NEPS) focuses on various returns to education over the life course. The longitudinal design allows us to study the complex and dynamic interaction processes when qualifications, competencies, and educational certificates are turned into economic and noneconomic returns. In this chapter, we outline the central theoretical concepts for analyzing returns to education and describe how they are implemented within NEPS. We discuss economic returns such as income and other labor market-related outcomes with an emphasis on expected income as an innovative concept. Noneconomic returns may come in the form of better health, increased subjective well-being, increased social and political participation, and changing processes of family formation. Over the life cycle, returns related to health and subjective well-being will tend to accrue from early childhood through adulthood, whereas returns related to political participation will tend to set in during late adolescence. In order to identify causal relationships, it is necessary to avoid considerable bias in the estimation of returns to education. One crucial source of biased estimators is the omission of the financial restrictions faced by the parents’ household. Thus, Pillar 5 implements several measures to control for the economic situation of the household such as household income and wealth.

Zusammenfassung

Säule 5 des Nationalen Bildungspanels erfasst unterschiedliche Bildungsrenditen im Lebensverlauf. Das Längsschnittdesign ermöglicht die Untersuchung komplexer und dynamischer Interaktionsprozesse, in deren Rahmen Qualifikationen, Kompetenzen und Bildungszertifikate in ökonomische und nichtökonomische Renditen umgewandelt werden. In diesem Kapitel werden die zentralen theoretischen Konstrukte zur Analyse von Bildungsrenditen vorgestellt und ihre Implementierung im Nationalen Bildungspanel beschrieben. Wir diskutieren ökonomische Bildungsrenditen wie Einkommen und weitere Arbeitsmarkterträge mit einem Schwerpunkt auf Einkommenserwartungen als innovatives Konzept. Der Begriff der nichtökonomischen Bildungsrenditen subsumiert verbesserte Gesundheit, höheres subjektives Wohlbefinden, erhöhte soziale und politische Partizipation sowie Auswirkungen auf den Prozess der Familienbildung. Bildungsrenditen in Form von Gesundheit und subjektivem Wohlbefinden sind über den ganzen Lebensverlauf – vom Kindergarten bis zum Erwachsenenalter – von Bedeutung, während Bildungsrenditen in Form von politischer Partizipation erst in der späten Jugendphase verstärkt auftreten. Um Kausalbeziehungen zu identifizieren, müssen gravierende Verzerrungen bei der Schätzung von Bildungsrenditen vermieden werden. Eine Quelle verzerrter Schätzer liegt in der fehlenden Berücksichtigung finanzieller Restriktionen des elterlichen Haushalts. Daher implementiert Säule 5 diverse Konstrukte zur Kontrolle der ökonomischen Haushaltssituation wie etwa Haushaltseinkommen und Vermögen.

J. Schwarze—We regret the sudden and untimely death of Johannes Schwarze on September 12, 2010.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 34.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 44.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Agüero, J. M., & Bharadwaj, P. (2014). Do the more educated know more about health? Evidence from schooling and HIV knowledge in Zimbabwe. Economic Development and Cultural Change, 62(3), 489–517.

    Google Scholar 

  • Argyle, M. (2003). 18 causes and correlates of happiness. In D. Kahneman, E. Diener, & N. Schwarz (Eds.), Well-beingThe foundations of hedonic psychology (pp. 353–373). New York, NY: Sage.

    Google Scholar 

  • Arrow, K. J. (1973). Higher education as a filter. Journal of Public Economics, 2(3), 193–216.

    Google Scholar 

  • Atella, V., & Kopinska, J. (2014). Body weight, eating patterns, and physical activity: The role of education. Demography, 51(4), 1225–1249.

    Google Scholar 

  • Attanasio, O., & Kaufmann, K. (2012). Education choices and returns to schooling: Intrahousehold decision making, gender and subjective expectations. Working Paper, Bocconi University, Milan.

    Google Scholar 

  • Balsa, A. I., & McGuire, T. G. (2001). Statistical discrimination in health care. Journal of Health Economics, 20, 881–907.

    Google Scholar 

  • Bauer, G., & Jacob, M. (2010). Fertilitätsentscheidungen im Partnerkontext. Eine Analyse der Bil- dungskonstellation von Paaren für die Familiengründung anhand des Mikrozensus 1996–2004. Kölner Zeitschrift für Soziologie und Sozialpsychologie, 62, 31–60.

    Google Scholar 

  • Becker, G. S. (1964). Human capital. New York, NY: National Bureau of Economic Research.

    Google Scholar 

  • Becker, A., Deckers, T., Dohmen, T., Falk, A., & Kosse, F. (2012). The relationship between economic preferences and psychological personality measures. Annual Review of Economics 4(1), 453–478.

    Google Scholar 

  • Berinsky, A. J., & Lenz, G. S. (2011). Education and political participation: Exploring the causal link. Political Behavior, 33(3), 357–373.

    Google Scholar 

  • Betts, J. R. (1996). What do students know about wages? The Journal of Human Resources, 31(1), 27–56.

    Google Scholar 

  • Blanchflower, D., & Oswald, A. (2004). Wellbeing over time in Britain and the USA. Journal of Public Economics, 88(7–8), 1359–1386.

    Google Scholar 

  • Blau, F. D., & Ferber, M. A. (1991). Career plans and expectations of young women and men. The Journal of Human Resources, 26(4), 581–607.

    Google Scholar 

  • Blossfeld, H.-P., & Timm, A. (2003). Who marries whom? Educational systems as marriage markets in modern societies. Dordrecht, Netherlands: Kluwer.

    Google Scholar 

  • Bourdieu, P., & Boltanski, L. (1981). The educational system and the economy: Titles and jobs. In C. C. Lemert (Ed.), French sociology: Rupture and renewal since 1968 (pp. 141–151). New York, NY: Columbia University Press.

    Google Scholar 

  • Bradley, R. H., Corwyn, R. F., McAdoo, H. P., & Coll, C. G. (2001). The home environments of children in the United States. Part I: Variations by age, ethnicity, and poverty status. Child Development 72(6), 1844–1867.

    Google Scholar 

  • Brand, J. E., & Xie, Y. (2010). Who benefits most from college? Evidence for negative selection in heterogeneous economic returns to higher education. American Sociological Review, 75(2), 273–302.

    Google Scholar 

  • Brunello, G., Lucifora, C., & Winter-Ebmer, R. (2004). The wage expectations of European business and economics students. The Journal of Human Resources, 39(4), 1116–1142.

    Google Scholar 

  • Card, D. (1999). The causal effect of education on earnings. In O. Ashenfelter & D. Card (Eds.), Handbook of Labor Economics (3. ed., pp. 1801–1863). Amsterdam, Netherlands: North-Holland.

    Google Scholar 

  • Conti, G., Heckman, J., & Urzua, S. (2010). The education-health gradient. American Economic Review, 100(2), 234–38.

    Google Scholar 

  • Cummins, R. A. (2006). Personal Wellbeing IndexAdult (PWI-A) manual. Melbourne, Australia: The Australian Centre on Quality of Life, Deakin University.

    Google Scholar 

  • Cummins, R. A., & Lau, A. L. D. (2005). Personal Wellbeing IndexSchool Children (PWI-SC) manual. Melbourne, Australia: School of Psychology, Deakin University.

    Google Scholar 

  • Dee, T. S. (2004). Are there civic returns to education? Journal of Public Economics, 88(9), 1697–1720.

    Google Scholar 

  • Dominitz, J., & Manski, C. F. (1996). Eliciting student expectations of the returns to schooling. The Journal of Human Resources, 31(1), 1–26.

    Google Scholar 

  • Erikson, R., & Jonsson, J. O. (1996). Explaining class inequality in education: The Swedish case. In R. Erikson & J. O. Jonsson (Eds.), Can education be equalized? The Swedish case in comparative perspective (pp. 1–63). Oxford, England: Westview Press.

    Google Scholar 

  • Erlinghagen, M., Rinne, K., & Schwarze, J. (1999). Ehrenamt statt Arbeitsamt? Sozioökonomische Determinanten ehrenamtlichen Engagements in Deutschland. WSI Mitteilungen, 52(4), 246–255.

    Google Scholar 

  • Fishbein, M., & Ajzen, I. (1975). Believe, attitude, intention, and behavior: an introduction to theory and research. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Frey, B. S., & Stutzer, A. (2002). What can economists learn from happiness research? Journal of Economic Literature, 40, 402–435.

    Google Scholar 

  • Fuchs, T., & Wößmann, L. (2007). What accounts for international differences in student performance? A re-examination using PISA data. Empirical Economics, 32, 433–464.

    Google Scholar 

  • Glick, J. E., Ruf, S. D., White, M. J., & Goldschneider, F. (2006). Educational engagement and early family formation: Differences by ethnicity and generation. Social Forces, 84(3), 1391–1415. Griliches, Z. (1977). Estimating the returns to schooling: Some econometric problems. Economet-rica, 45(1), 1–22.

    Google Scholar 

  • Griliches, Z. (1977). Estimating the returns to schooling: Some econometric problems. Economet-rica, 45(1), 1–22.

    Google Scholar 

  • Gross, C., & Groß, J. (2008). Rational-Choice-Erklärungen zum Rauchverhalten und ihre empirische Relevanz. Soziale Welt, 59(3), 247–268.

    Google Scholar 

  • Gross, C., Hofmann, S., Mühlenweg, A., Pikos, A. K., Rigotti, T., & Schoger, L. (2017). Theoretische und empirische Perspektiven auf Bildung, Gesundheit und Arbeitsfähigkeit – ein interdisziplinärer Überblick. Sozialer Fortschritt, 66(1), 3–30.

    Google Scholar 

  • Grossman, M. (1972). The demand for health: a theoretical and empirical investigation. New York, NY: National Bureau of Economic Research.

    Google Scholar 

  • Grossman, M. (2006). Education and nonmarket outcomes. In E. A. Hanushek & F. Welch (Eds.), Handbook of the economics of education (pp. 577–634). Amsterdam, Netherlands: North-Holland.

    Google Scholar 

  • Hadjar, A., & Becker, R. (2006). Politisches Interesse und politische Partizipation. In A. Hadjar & R. Becker (Eds.), Die Bildungsexpansion: erwartete und unerwartete Folgen (pp. 179–204). Wiesbaden, Germany: VS Verlag für Sozialwissenschaften.

    Google Scholar 

  • Hadjar, A., & Becker, R. (2007). Unkonventionelle politische Partizipation im Zeitverlauf. Hat die Bildungsexpansion zu einer politischen Mobilisierung beigetragen? Kölner Zeitschrift für Soziologie und Sozialpsychologie, 59, 410–439.

    Google Scholar 

  • Hanushek, E. A. (2005). The economics of school quality. German Economic Review, 6(3), 269–286.

    Google Scholar 

  • Hanushek, E. A., & Wößmann, L. (2007). The role of school improvement in economic development. NBER Working Paper 12832. Cambridge, MA: National Bureau of Economic Research.

    Google Scholar 

  • Harmon, C., Oosterbeek, H., & Walker, I. (2003). The returns to education: Microeconomics. Journal of Economic Surveys, 17(2), 115–155.

    Google Scholar 

  • Heckman, J. J. (1976). A life-cycle model of earnings, learning, and consumption. Journal of Political Economy, 84, 11–44.

    Google Scholar 

  • Heckman, J. J., Humphries, J. E., & Veramendi, G. (2016). Returns to education: The causal effects of education on earnings, health and smoking. (IZA Discussion Papers, No. 9957). Bonn, Germany: Institute for the Study of Labor (IZA).

    Google Scholar 

  • Hout, M. (2012). Social and economic returns to college education in the United States. Annual Review of Sociology, 38, 379–400.

    Google Scholar 

  • Idler, E. L., & Benyamini, Y. (1997). Self-rated health and mortality: A review of twenty-seven community studies. Journal of Health and Social Behaviour, 38, 21–37.

    Google Scholar 

  • Jensen, R. (2010). The (perceived) returns to education and the demand for schooling. The Quarterly Journal of Economics, 125(2), 515–548.

    Google Scholar 

  • Jungbauer-Gans, M., & Gross, C. (2009). Erklärungsansätze sozial differenzierter Gesund- heitschancen. In M. Richter & K. Hurrelmann (Eds.), Soziologie gesundheitlicher Ungleichheit. Theorien, Konzepte und Methoden (2. ed., pp. 77–98). Wiesbaden, Germany: VS Verlag für Sozialwissenschaften.

    Google Scholar 

  • Kravdal, Ø., & Rindfuss, R. R. (2008). Changing relationships between education and fertility: A study of women and men born 1940 to 1964. American Sociological Review, 73, 854–873.

    Google Scholar 

  • Kreyenfeld, M. (2010). Uncertainties in female employment careers and the postponement of par- enthood in Germany. European Sociological Review, 26(3), 351–366.

    Google Scholar 

  • Langness, A., Richter, M., & Hurrelmann, K. (2005). Gesundheitsverhalten im Jugendalter: Ergebnisse der internationalen “Health Behaviour in School-aged Children”-Studie. Das Gesundheitswesen, 67, 422–431.

    Google Scholar 

  • Lundborg, P. (2013). The health returns to schooling—what can we learn from twins? Journal of Population Economics, 26(2), 673–701.

    Google Scholar 

  • Mackenbach, J. P. (2006). Health inequalities: Europe in profile. An independent expert report commissioned by the UK presidency of the EU. London, England: Department of Health.

    Google Scholar 

  • Manski, C. F. (2004). Measuring expectations. Econometrica, 72(5), 1329–1376.

    Google Scholar 

  • Mayer, A. K. (2011). Does education increase political participation?. The Journal of Politics, 73(3), 633–645.

    Google Scholar 

  • McIntosh, S., & Vignoles, A. (2001). Measuring and assessing the impact of basic skills on labour market outcomes. Oxford Economic Papers, 53(3), 453–481.

    Google Scholar 

  • Middendorff, E., Apolinarski, B., Poskowsky, J., Kandulla, M., & Netz, N. (2013). Die wirtschaftliche und soziale Lage der Studierenden in Deutschland 2012. 20. Sozialerhebung des Deutschen Studentenwerks durchgeführt durch das HIS-Institut für Hochschulforschung. Bonn, Berlin: Bundesministerium für Bildung und Forschung (BMBF).

    Google Scholar 

  • Mincer, J. (1974). Schooling, experience and earnings. New York, NY: Columbia University Press.

    Google Scholar 

  • Murnane, R. J., Willett, J. B., & Levy, F. (1995). The growing importance of cognitive skills in wage determinantion. Review of Economics and Statistics, 77(2), 251–266.

    Google Scholar 

  • Oreopoulos, P., & Salvanes, K.G. (2011). Priceless. The nonpecuniary benefits of schooling. Journal of Economic Perspectives 25(1), 159–184.

    Google Scholar 

  • Perez-Arce, F. (2017). The effect of education on time preferences. Economics of Education Review 56, 52–64.

    Google Scholar 

  • Raffe, D. (2007). Vocational upper-secondary education and the transition from school. European Sociological Review, 23, 49–63.

    Google Scholar 

  • Rugulies, R., & Siegrist, J. (2002). Soziologische Aspekte der Entstehung und des Verlaufs der kor- onaren Herzkrankheit. Soziale Ungleichverteilung der Erkrankung und chronische Distress- Erfahrungen im Erwerbsleben. Frankfurt a. M., Germany: VAS.

    Google Scholar 

  • Schoger, L., & Gross, C. (2018). Modell zur Erklärung von beruflichen Fehlzeiten. Sozialer Fortschritt, 67, 303–325.

    Google Scholar 

  • Schuller, T., Preston, J., Hammond, C., Brassett-Grundy, A., & Bynner, J. (Eds.). (2004). The benefits of learning. The impact of education on health, family life and social capital. London, England: Routledge.

    Google Scholar 

  • Schumacher, J., Klaiberg, A., & Brähler, E. (2003). Diagnostik von Lebensqualität und Wohlbefinden. Eine Einführung. In J. Schumacher, A. Klaiberg, & E. Brähler (Eds.), Diagnostische Verfahren zu Lebensqualität und Wohlbefinden (pp. 1–18). Göttingen, Germany: Hogrefe.

    Google Scholar 

  • Schwarze, J., Andersen, H. H., & Anger, S. (2000). Self-rated health and changes in self-rated health as predictors of mortalityFirst evidence from German panel data (DIW Discussion Paper No. 203). Berlin, Germany: Deutsches Institut für Wirtschaftsforschung.

    Google Scholar 

  • Schwarze, J., & Härpfer, M. (2007). Are people inequality averse, and do they prefer redistribution by the state? Evidence from German longitudinal data on life satisfaction. Journal of Socio-Economics, 36(2), 233–249.

    Google Scholar 

  • Siegrist, J. (1996). Adverse health effects of high effort—low reward conditions at work. Journal of Occupational Health Psychology, 1, 27–43.

    Google Scholar 

  • Sørensen, A. B. (1977). The structure of inequality and the process of attainment. American Socio- logical Review, 42(6), 965–978.

    Google Scholar 

  • Spence, A. M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374.

    Google Scholar 

  • Tyler, J. H., Murnane, R. J., & Willett, J. B. (2000). Do the cognitive skills of school dropouts matter in the labor market? Journal of Human Resources, 35(4), 748–754.

    Google Scholar 

  • Verhaest, D., & Omey, E. (2009). Objective over-education and worker well-being: A shadow price approach. Journal of Economic Psychology, 30(3), 469–481.

    Google Scholar 

  • Wadsworth, M., & Bartley, M. (2006). Social inequality, family structure and health in the life course. In C. Wendt & C. Wolf (Eds.), Soziologie der Gesundheit. (Kölner Zeitschrift für Soziologie und Sozialpsychologie: Sonderheft 46, pp. 125–143). Wiesbaden, Germany: VS Verlag für Sozialwissenschaften.

    Google Scholar 

  • Webbink, D., & Hartog, J. (2004). Can students predict starting salaries? Yes! Economics of Education Review, 23(2), 103–113.

    Google Scholar 

  • Wolter, S. C. (2000). Wage expectations: A comparison of Swiss and US students. Kyklos, 53(1), 51–69.

    Google Scholar 

  • Wolter, S. C., & Zbinden, A. (2002). Labour market expectations of Swiss university students. International Journal of Manpower, 23(5), 458–470.

    Google Scholar 

  • Wößmann, L., & West, M. R. (2006). Class-size effects in school systems around the world: Evidence from between-grade variation in TIMSS. European Economic Review, 50(3), 695–736.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Christiane Gross .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Fachmedien Wiesbaden GmbH, ein Teil von Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Gross, C., Bela, A., Jungbauer-Gans, M., Jobst, A., Schwarze, J. (2019). Educational Returns Over the Life Course. In: Blossfeld, HP., Roßbach, HG. (eds) Education as a Lifelong Process. Edition ZfE, vol 3. Springer VS, Wiesbaden. https://doi.org/10.1007/978-3-658-23162-0_8

Download citation

  • DOI: https://doi.org/10.1007/978-3-658-23162-0_8

  • Published:

  • Publisher Name: Springer VS, Wiesbaden

  • Print ISBN: 978-3-658-23161-3

  • Online ISBN: 978-3-658-23162-0

  • eBook Packages: EducationEducation (R0)

Publish with us

Policies and ethics