Education and lifetime income during demographic transition

Arbeitspapier

The paper studies the power of educational investments in relation to transfers for fostering lifetime income and for reducing income inequality in Germany. The welfare analysis is based on a model of age-dependent human capital accumulation, featuring dynamic complementarities in skill formation over the life cycle, and calibrated for the period of ongoing demographic transition until 2080. If policy aims at reducing the inequality of lifetime income among people of the same generation, educational investments for people younger than or equal to seventeen do a better job compared to transfers in adulthood. In an intergenerational perspective all cohorts born after 1976 will gain from tax-financed additional investments in preschooleducation introduced in 2011. Additional investments into secondary education will, as a rule, not cause life time income to raise enough to compensate its costs.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 13-021

Classification and Topics

• Classification: Wirtschaft ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Social Security and Public Pensions ; Education and Research Institutions: General ; Demographic Trends, Macroeconomic Effects, and Forecasts
• Subject: early education ; demographic change ; inequality over the life span ; redistributive policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pfeiffer, Friedhelm ; Reuß, Karsten
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/72465
• URN: urn:nbn:de:bsz:180-madoc-332976
• Last update: 10.03.2025, 11:44 AM CET