Early tracking, academic vs. vocational training and the value of 'second chance' options

This paper employs the dynamic treatment effects methodology proposed by Heckman et al. (2016, 2017) to examine educational transitions and expected returns in the German education system which is characterized by rigid early tracking but with options to revise track choices at later stages. We document strong sorting of individuals along observed and unobserved characteristics across the stages of the system. We consider expected wage returns to track choices including the continuation values arising from the options opened up by choosing a certain track. Expected returns to choosing higher t ... Show more

Authors: Biewen, Martin; Tapalaga, Madalina

Published: Bonn, Germany, IZA, 2017

Resource type: Report, paper or authored book

Physical description: 58 p.

Access item: http://ftp.iza.org/dp11080.pdf

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