Guido Heineck

Intergenerational Transmission of Educational Attainment in Germany – The Last Five Decades

Summary Over the last decades the German education system underwent numerous reforms in order to improve “equality of opportunity”, i.e. to guarantee all pupils independent of parental background equal access to higher education. At the same time internationally comparative evidence yields that Germany features particularly low intergenerational mobility with respect to educational attainment. This study investigates the development in intergenerational education mobility in Germany for the birth cohorts 1929 through 1978 with respect to secondary school attainment. We test whether the impact of parental educational background on child educational outcomes changed over time. In spite of massive public policy interventions and education reforms our results yield no significant reduction in the role of parental educational background for child outcomes over the last decades.

Do smart parents raise smart children? The intergenerational transmission of cognitive abilities

Complementing prior research on income and educational mobility, we examine the intergenerational transmission of cognitive abilities. We find that individuals’ cognitive skills are positively related to their parents’ abilities, despite controlling for educational attainment and family background. Differentiating between mothers’ and fathers’ IQ transmission, we find different effects on the cognition of sons and daughters. Cognitive skills that are based on past learning are more strongly transmitted between generations than skills that are related to innate abilities. Our findings are not compatible with a pure genetic model but rather point to the importance of parental investments for children’s cognitive outcomes.

Working Time Preferences, Hours Mismatch and Well-Being of Couples: Are There Spillovers?

We analyze how well-being is related to working time preferences and hours mismatch. Selfreported measures of life satisfaction are used as an empirical approximation of true wellbeing. Our results indicate that well-being is generally lower among workers with working time mismatch. Particularly underemployment is detrimental for well-being. We further provide first evidence on spillovers from the partner’s working time mismatch. However, the spillover becomes insignificant once we control for the partner’s well-being. This suggests that well-being is contagious, and the spillover is due to interdependent utilities. Females experience the highest well-being when their partner is working full-time hours. Male wellbeing is unaffected over a wide interval of the partner’s working hours.

A Different Look at Lenin's Legacy: Trust, Risk, Fairness and Cooperativeness in the Two Germanies

What are the long-term effects of Communism on economically relevant notions such as social trust? To answer this question, we use the reunification of Germany as a natural experiment and study the post-reunification trajectory of convergence with regard to individuals’ trust and risk, as well as perceived fairness and cooperativeness. Our hypotheses are derived from a model of German reunification that incorporates individual responses both to incentives and to values inherited from earlier generations as recently suggested in the literature. Using data from the German Socio-Economic Panel, we find that despite twenty years of reunification East Germans are still characterized by a persistent level of social distrust. In comparison to West Germans, they are also less inclined to see others as fair or helpful. Implied trajectories can be interpreted as evidence for the passing of cultural traits across generations and for cooperation being sustained by values rather than by reputation. Moreover, East Germans are found to be more risk loving than West Germans. In contrast to trust and fairness, full convergence in risk attitude is reached in recent years.

Cognitive abilities and earnings - first evidence for Germany

We provide first evidence on the relationship between cognitive abilities and earnings in Germany using data from the German Socio-Economic Panel (SOEP) Study. The estimates suggest that mechanics abilities are positively related to wages of West German workers, even when educational attainment is controlled for. Pragmatics of cognition are not related to earnings. In line with studies for other countries, we find that ability and education are inseparable determinants of earnings.

Sexual orientation and earnings: evidence from the ISSP

There is a small literature suggesting for earnings differentials of nonheterosexual individuals. This study adds to this research using 1994 International Social Survey Programme data. While earnings of lesbian women and bisexual individuals are unaffected, results from selection corrected Mincer-type regressions indicate earnings penalties of about 17–20% for gay men. Oaxaca decomposition suggests that two-thirds of this differential arise from discrimination.

Kosten und Nutzen der Ausbildung an Tertiärbildungsinstitutionen im Vergleich

Abstract We compare German institutions of tertiary education (universities and polytechnics) with respect to the cost of and the returns to their educational degrees. Based on cost data from two different sources we find that on average the expenditures of universities are lower than those of polytechnics when we consider expenditures per potential enrollee and per student enrolled during the regular education period. We apply data from the German Socio-economic Panel (2001-2007) to estimate the private returns to tertiary education and find higher returns to university than polytechnic training. These results are robust to a variety of alternative procedures.

Love thy neighbor – religion and prosociality

Purpose The purpose of this paper is to investigate the relationship between religious involvement and attitudinal (importance of helping others and of being socially active) and behavioral components of prosociality (volunteering, charitable giving, and blood donations) in Germany. Design/methodology/approach The empirical analyses are based on representative, longitudinal data from the German Socio-Economic Panel, which allows avoiding issues of reverse causality. Findings The results suggest for a moderate, positive link between individuals’ religious involvement as measured by church affiliation and church attendance and the prosociality aspects addressed. Despite the historic divide in religion, the results in West and East Germany do not differ substantially in terms of the underlying mechanisms. Originality/value The paper complements the growing literature from experimental economics on the relationship between individuals’ religiosity and their prosociality. Based on representative longitudinal data, it contributes by providing evidence for Germany for which there is barely any insight yet and by addressing a wider range of attitudinal and (self-reported) behavioral components of prosociality.