9 Educational returns over the life course

Abstract

Pillar 5 of the German National Educational Panel Study 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 the National Educational Panel Study. We discuss economic returns such as income and other labormarket-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, reduced crime, 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 crime and 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.

Cognitive, Noncognitive, and Family Background Contributions to College Attainment: A Behavioral Genetic Perspective

“…The benefits associated with a college education are, moreover, not limited to economic outcomes. Individuals with a college degree are more likely than those without a degree to report good health (Gross, Jobst, Jungbauer-Gans, & Schwarze, 2011), to be engaged citizens in their communities (Dee, 2004) and to live longer (Eide & Showalter, 2011); they are also less likely to smoke (de Walque, 2007) or be incarcerated (Lochner & Moretti, 2004). Although whether a college education is directly responsible for these benefits is open to question (Heckman & Vytlacil, 2001), the many factors associated with a college education have contributed to the perceived value of, and consequently the desire to achieve, a four-year college degree.…”

Education systems and inequalities

“…A higher education may also mean better understanding of what particular groups expect with regard to voiced attitudes and behaviour. Finally, more highly educated people are able to build an efficient social network and increase their likelihood of marriage (affection) (see also Gross et al, 2011, for monetary and non-monetary returns on education).…”

Education Systems and Inequalities

“…A higher education may also mean better understanding of what particular groups expect with regard to voiced attitudes and behaviour. Finally, more highly educated people are able to build an efficient social network and increase their likelihood of marriage (affection) (see also Gross et al, 2011, for monetary and non-monetary returns on education).…”