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Obtaining or not obtaining a general education graduation certificate (Hauptschulabschluss) The impact on employment, income, and lifestyle Alexandra Klo and Johannes Jaenicke University of Erfurt. Research question. Results. 1. Income . - PowerPoint PPT Presentation

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Obtaining or not obtaining a general education graduation certificate (Hauptschulabschluss)The impact on employment, income, and lifestyleAlexandra Klo and Johannes JaenickeUniversity of ErfurtResearch questionOur empirical investigation compares the groups with and without a general education graduation certificate looking at 25,000 respondents of the representative ALLBUS survey interviewed between 1980 to 2008 in the Old and additionally after 1990 in the New Laender.

We find remarkable and frequently significant differences between both groups: the average net income increases from 924 to 1,200 Euros in prices of 2008 upon successful graduation the probability of full-time occupation increases from 21.4% to 34.5% and for part-time occupation from 3.6% to 5.4%.the probability of unemployment in the last 10 years decreases from 28.2% to 18.3%.

Additionally, we find pronounced group-specific differences in educational level of partners and friends, leisure activities, social contacts, subjective health feeling and well-being and in BMI.Obtaining a general secondary school certificate has clear positive effects on the personal life income, health and happiness indicators as well as on the national income and the human development index of a nation.Results1. Income TheoryThe human capital theory is a modern extension of Adam Smith`s explanation of wage differentials by the so-called net (dis)advantages between different employments. The costs of learning are an important component of net advantage. Gary S. Becker and Jacob Mincer claim that, other things like ability and motivation being equal, personal incomes vary according to the amount of investment in human capital, that is, the quantity and quality of education and training undertaken by individuals or groups.

The educational decision is explained by rational or limited rational choice theory, taking into account the social status and preferences of the family. Raymond Boudon presents a model of social immobility. The inequality of educational opportunitiy is explained by primary and secondary effects of social stratification. The primary effects result from cultural capital (Bourdieu and Passeron, 1970), the secondary effects from differences in social status cost/benefit profiles of educational choices.

References:

Becker, G. S.(1993):Der konomische Ansatz zur Erklrung menschlichen Verhaltens. Mohr. Tbingen 1993.Boudon, R. (1974): Education. Opportunity. and Social Inequality: Changing Prospects in Western Society. New York et. al. : Wiley-Interscience.Bourdieu, P. and Passeron, J.-C. (1970): La Reproduction, Editions de Minuit, Paris. Mincer, J.A. (1974): Schooling. Experience. and Earnings. Columbia University Press. 1974.Esser, H. (1999): Soziologie. Spezielle Grundlagen. Band 1: Situationslogik und Handeln. Frankfurt/New York. 1999. Schultz, T. (1992):The economic value of education. Studies in the economics of education. Elgar Books. Aldershot.Two-Step Cluster analysisUsing Bayesian information criterion. Including:socio-demographic and educational characteristics of the respondent, the highest school degree of his/her mother, the employment status of a friend, net income earned in prices of 2008 and the Treimann prestige score.German General Social Survey (ALLBUS/GGSS)Conducted biennally since 1980. From 1980 to 1990, the sample consisted of 3.000 West German and West Berlin respondents.In 1991, 1,500 respondents were selected from the Old and 1,500 from the New Laender, and since 1992 the sample has been weighted by population so that 2,400 interviews are conducted in the Old and 1,100 in the New Laender.Total of 51.416 respondents over time.

2. Employment

Short- time workNot employedPupil. StudentPensionerHousewife.-manMilitary Service/Civilian ServiceOut of workInactive PopulationBesides employedRegular half-time occupationRegular full-time occupation

Vocational training Occupation

Technical or vocational college certificate (Fachschulabschluss) Compact vocational training course (Teilfacharbeiterabschlu. former East Germany)Other vocational training certificate University degree (Hochschulabschluss)Polytechnic degree (or engineering college degree) (Fachhochschulabschluss)Master(craftsman), technician or equivalent college certificate (Meister-. Techniker- odergleichwertiger Fachschulabschluss)Work placement/internship (Berufliches Praktikum. Volontariat)Specialized vocational college certificate (Berufsfachschulabschluss)Completed commercial traineeship (Abgeschlossene kaufmnnische Lehre)Completed trades/crafts or agricultural traineeship (Abgeschlossene gewerbliche oder landwirtschaftliche Lehre)No completed vocational training

3. Way of LifeType of BuildingWithout graduationSecondary general school education.Old LaenderNew LaenderOld LaenderNew Laender Farm building 2.0%10.3%6.4%6.1%Detached one/two family house

23.0%23.1%39.7%34.5%Terraced or semi-detached one/two family house

10.0%7.7%16.6%12.4%Building with 3 or 4 flats

12.0%3.8%9.7%7.7%Building with 5 to 8 flats

31.0%25.6%16.2%15.4%Building with 9 or more flats (but no more than 8 floors. i.e. not a high-rise)

17.3%20.5%8.8%20.4%High-rise (9 or more floors)

3.0%6.4%1.2%2.5%Other house/building.

1.7%2.6%1.4%.9%Type of accomodation

Without graduationSecondary general school educationOld LaenderNew LaenderOld LaenderNew Laender Sublet 4.6%4.8%1.5%3.0%Official/company flat 1.9%2.4%1.6%1.0%Subsidised municipal housing 26.1%36.1%12.7%22.7%Rented flat 33.9%21.2%26.1%27.1%Rented house 3.8%1.4%3.3%1.7%Flat owned by the family 2.2%.5%4.3%1.4%House owned by the family 26.3%32.2%49.4%40.3%Other type of accomodation1.3%1.4%1.1%2.8%IntroductionTo what extend does a successful general school education change the life of a person regarding his/her chances in working life,the leisure activities and the health status of an individual? To what extend is the educational attainment correlated intergenerationally?Secondary general school educationSecondary general school educationwithout graduationwithout graduation 1991 1992 1994 1996 1998 2000 2002 2004 2006 2008 1991 1992 1994 1996 1998 2000 2002 2004 2006 2008 without graduation Secondary general school education Mean net income Net income in prices 2008 New Laender Old Laender

Secondary general school educationNo graduationSecondary general school educationNo graduationCluster one:415 male respondents,all respondents having a general school degree,average net income of 1,867 Euro (prices 2008),mothers with a general school certificate.Cluster two:111 male and 270 female respondents,6.6% without a general school degree,average net income of 1.202 Euro (prices 2008),more migration background, more persons with no vocational degree,mothers education varies from no school certificate to secondary school level I certificate.

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