News 2019

December 2019

New Newsletter 4/2019 of the ifo Center for the Economics of Education Has Been Published

The Economics of Higher Education: Overview of a Vibrant Field

Together with Eric Bettinger, I have been editing a two-volume collection of seminal papers in the economics of higher education for the "International Library of Critical Writings in Economics" Series at Edward Elgar. The economics of higher education is currently a vibrant and growing field in economics. In our introductory chapter, we provide an overview of the field as it currently stands. We cover the breadth of the economics of higher education with sections on (I) the returns to education, including the role of higher education in the growing inequality in many countries and exploration into the heterogeneity in returns; (II) college attendance and the ever-growing importance of completion; (III) higher education finance including the impacts of changing costs and subsidies both to institutions and students; (IV) educational production and its relationship to the science of learning; and (V) the market for education including positive models focused on the objective function of colleges and their changing nature.

New Directions in the Economics of Higher Education (with E. Bettinger). In: E. Bettinger, L. Woessmann (eds.), New Directions in the Economics of Higher Education, Cheltenham: Edward Elgar, forthcoming

Two New Contributions to Interesting Collected Volumes

The book "Zeitenwende" (Turn of an Era) promises "short answers to great questions of the present". In my contribution, I argue that educational opportunities are the key to the prosperity of nations. The book "Das Bildungswesen in Deutschland" (Education in Germany) "offers an up-to-date and comprehensive overview of education in Germany over the entire life span". Our chapter provides an overview of research on educational returns - in terms of growth, employment, income, and non-monetary returns to education.

Bildungschancen als Schlüssel für den Wohlstand der Nationen. In: J. Allmendinger, O. Jarren, C. Kaufmann, H. Kriesi, D. Kübler (eds.), Zeitenwende: Kurze Antworten auf große Fragen der Gegenwart, Zürich: Orell Füssli, 45-54, 2019

Bildungserträge (with F. Kugler). In: O. Köller, M. Hasselhorn, F.W. Hesse, K. Maaz, J. Schrader, H. Solga, C.K. Spieß, K. Zimmer (eds.), Das Bildungswesen in Deutschland: Bestand und Potenziale, Bad Heilbrunn: Julius Klinkhardt / UTB, 231-261, 2019

November 2019

Information on Spending Lowers Support for Increases

Our new study shows that information about the actual level of public education spending substantially decreases approval for future increases in education spending in Switzerland. This result is in line with prior evidence from Germany and the United States which suggests that information provision has similar effects on policy preferences across countries. The few existing differences in policy preferences between countries can be rationalized with differences in the education systems.

Information Provision and Preferences for Education Spending: Evidence from Representative Survey Experiments in three Countries (with M. Cattaneo, P. Lergetporer, G. Schwerdt, K. Werner, and S.C. Wolter). CESifo Working Paper 7936 / IZA Discussion Paper 12749, November 2019

Better Education Would Bring Germany 14 Trillion Euros

In our Analytical Report for the European Expert Network on Economics of Education (EENEE), we use results about the relationship between educational achievement and a country's economic growth to present new projections on economic benefits of educational improvement for the EU member states. Germany, for example, would achieve around 14 trillion euros in additional gross domestic product (GDP) in the long run if educational achievement was increased by 25 PISA points. This is equivalent to an average increase in future GDP of 7.3%. EU-wide returns would amount to more than 70 trillion euros. The analyses illustrate the enormous impact of educational reforms on EU member states.

The Economic Benefits of Improving Educational Achievement in the European Union: An Update and Extension (with E.A. Hanushek). EENEE Analytical Report 39, November 2019

Blackboard vs. Computers: It Depends on the Application

Can the use of computers in the classroom take learning to a new level? The emergence of computer-based teaching methods has raised high expectations. Will the next generation of digital natives learn much quicker and better when technology is involved? Most previous studies have arrived at one surprising answer: No. Most scholars find little to no effect of classroom computers on student achievement. Does this mean the purchase of expensive computers for the classroom is merely a waste of money and we should stick to blackboard and chalk? Evidence from our own study suggests the answer must again be: No. The devil is in the details here. We find that the lack of effects is the result of using computers in different ways. Some are productive while others are not.

Blackboard vs. Computers: It Depends on the Application (with O. Falck). international-education.blog, 5.11.2019

October 2019

Measurement of Student Achievement Counts

In the context of PISA results, one question is often raised: Do we need the PISA study in the first place? Clearly yes, we argue in the inaugural contribution to the new blog www.international-education.blog. The internationally comparable PISA scores are a good index of the future quality of the labor force in each country, which in turn has been shown be a decisive factor in determining long-run economic growth. Measuring student achievement also helps to identify appropriate educational policies.

Measurement Counts: International Student Tests and Economic Growth (with E.A. Hanushek). international-education.blog, 1.10.2019

New Newsletter 3/2019 of the ifo Center for the Economics of Education Has Been Published

September 2019

On Sabbatical at Stanford

I am spending September 2019 to February 2020 as Distinguished Visiting Fellow at the Hoover Institution at Stanford University.

Chapter on Education and Growth Published in Research Handbook on the Sociology of Education

The newly published Research Handbook on the Sociology of Education contains our chapter on knowledge capital and economic growth.

Knowledge Capital and Economic Growth (with E.A. Hanushek). In: R. Becker (ed.), Research Handbook on the Sociology of Education, Cheltenham: Edward Elgar Publishing, 476-497, 2019

August 2019

Wirtschaftswoche Article on Deferred Income-Contingent Tuition

Downstream tuition fees have to be paid only after the studies and above a certain income threshold. Thus, also people from poor backgrounds can afford to go to university. Our contribution in the Wirtschaftswoche argues that tuition fees in the downstream form are efficient, fair, and supported by a strong majority.

Studium zum Nulltarif? Nicht für die Besserverdiener von morgen! (with P. Lergetporer). Wirtschaftswoche, 30.8.2019, p. 36

ifo Education Survey 2019: Germans Support Measures Against Educational Inequality

Germans support the introduction of measures to reduce inequality in education. This is the result of the ifo Education Survey 2019, which polled 4,000 German citizens. 78 percent support state coverage of preschool fees and 67 percent support compulsory preschool attendance. 61 percent want to push the assignment of students to secondary schools back to after the sixth grade. 81 percent favor higher government spending on schools with students from disadvantaged backgrounds, 64 percent favor higher salaries for teachers who teach many children from disadvantaged backgrounds, and 56 percent favor the introduction of all-day schooling. 83 percent support the expansion of scholarship programs for low-income university students. Despite these high approval rates for policies that aim to reduce inequality, the majority of Germans are still in favor of distributing additional funds evenly rather than targeting it at disadvantaged groups. These results were again widely covered by the media, including Spiegel online, SZ, FAZ, Handelsblatt, Welt, Bild, tagesschau.de, and many others.

Was die Deutschen über Bildungsungleichheit denken: Ergebnisse des ifo Bildungsbarometers 2019 (with P. Lergetporer, E. Grewenig, S. Kersten, F. Kugler and K. Werner). ifo Schnelldienst 72 (17): 27-41, 2019

SZ Article on Comparable Exit Exams

My article in the Süddeutsche Zeitung about the findings of the ifo Education Survey that 89% of the Bavarian population support German-wide Abitur examinations:

Das Abitur soll vergleichbar sein. Süddeutsche Zeitung, 19.8.2019, p. 16

Contribution to Volume "21st Century Economics: Economic Ideas You Should Read and Remember"

I recommend the fascinating paper by Chetty, Friedman, and Rockoff who show that high-quality teachers - those whose students show higher learning gains - have very strong effects on their students’ lifetime outcomes.

Ludger Woessmann Recommends “Measuring the Impacts of Teachers II: Teacher Value-Added and Student Outcomes in Adulthood” by Raj Chetty, John N. Friedman, and Jonah E. Rockoff. In: B. S. Frey, C. A. Schaltegger (eds.), 21st Century Economics: Economic Ideas You Should Read and Remember, Springer Nature, 157-159, 2019

July 2019

"9+5 Theses on the Effects of the Protestant Reformation" Published in IEA Volume

Our chapter on how Luther’s quest for education changed German economic history has been published in a nice collection of papers on recent Advances in the Economics of Religion.

How Luther’s Quest for Education Changed German Economic History: 9+5 Theses on the Effects of the Protestant Reformation (with S.O. Becker). In: J.-P. Carvalho, S. Iyer, J. Rubin (eds.), Advances in the Economics of Religion, International Economic Association Series, New York: Palgrave Macmillan, 215-227, 2019

Chapter on Education and Industrialization Published in Handbook of Cliometrics

The OnlineFirst version of our chapter on education and socio-economic development during the industrialization in the second edition of the Handbook of Cliometrics is now freely available online.

Education and Socio-Economic Development during the Industrialization (with S.O. Becker). In: C. Diebolt, M. Haupert (eds.), Handbook of Cliometrics, 2^nd ed., Berlin: Springer, 2019

June 2019

New Newsletter 2/2019 of the ifo Center for the Economics of Education Has Been Published

May 2019

New Report by the Expert Council on Education: Region and Education. Myth City - Countryside

Are there regional differences in educational opportunities in Germany in the relationship between urban and rural areas? In its current report, the Expert Council on Education (Aktionsrat Bildung) examines the extent to which the place of residence is related to the provision of educational opportunities, educational participation, student performance, and social and occupational participation in Germany. Some widespread assumptions about regional disparities prove to be myths.

Region und Bildung. Mythos Stadt - Land. Gutachten des Aktionsrats Bildung. Münster: Waxmann, 2019

3 1/2 Questions in the Zeit Chancen Brief

My answers to the "Three-and-a-half" questions in the Zeit Chancen Brief:

3 1/2 Fragen an ... Prof. Dr. Ludger Wößmann. Zeit Chancen Brief, 20.5.2019

Interview in ABC

My interview in the Spanish newspaper ABC on the effects of different institutional structures of school systems on student achievement:

Las escuelas en España deberían enseñar valores cívicos que unan a los ciudadanos, no separarlos. ABC, 9.5.2019

April 2019

Appointment to PWP Editorial Board

I have been appointed to the Editorial Board of the Perspektiven der Wirtschaftspolitik.

Council Report and FAZ Article: Equality of Opportunity in Education as Core Element of the Social Market Economy

The current German debate on reforming the Social Market Economy tends to neglect one of its core promises: to empower people to participate self-dependently in markets and society. Only an education policy that creates equal starting opportunities can achieve this, as pointed out by the Academic Advisory Council at the Federal Ministry of Economics in its report "Equality of Opportunity in Education as Core Element of the Social Market Economy." Only an education system that ensures high-quality education for all children and youths will enable to carry the interplay of self-dependent competition and social participation into the future in order to master the new societal challenges.

Bildungsgerechtigkeit als Kernelement der Sozialen Marktwirtschaft. Brief des Wissenschaftlichen Beirats beim Bundesministe­rium für Wirtschaft und Energie. Berlin: BMWi, 2019

Bildungsgerechtigkeit als Kernelement der Sozialen Marktwirtschaft (with C. Gathmann, H. Gersbach, and V. Grimm). Ökonomenstimme, 19.3.2019

Bildungschancen sind der Schlüssel (with V. Grimm). Frankfurter Allgemeine Zeitung, 29.4.2019, p. 16

March 2019

New Working Paper: Gap in Student Achievement by Socioeconomic Status in U.S. Unwavering for Nearly 50 Years

Differences in the performance on math, reading, and science tests between disadvantaged and advantaged U.S. students are as wide today as they were for children born in 1954. Using intertemporally linked assessments from NAEP, TIMSS, and PISA, our new study shows that achievement gaps between the top and bottom deciles and the top and bottom quartiles of the socio-economic status (SES) distribution have been large and remarkably constant for a near half century. These unwavering gaps have not been offset by overall improvements in achievement levels, which have risen at age 14 but remained unchanged at age 17 for the most recent quarter century. The long-term failure of major educational policies to alter SES gaps suggests a need to reconsider standard approaches to mitigating disparities.

The Unwavering SES Achievement Gap: Trends in U.S. Student Performance (with E.A. Hanushek, P.E. Peterson, and L.M. Talpey). NBER Working Paper 25648, March 2019

The Achievement Gap Fails to Close (with E.A. Hanushek, P.E. Peterson, and L.M. Talpey). Education Next 19 (3): 8-17, 2019

US Achievement Gaps Hold Steady in the Face of Substantial Policy Initiatives (with E.A. Hanushek, P.E. Peterson, and L.M. Talpey). VOX, 15.4.2019

Brief video in Intellections series of PolicyEd:

Interview on the Digital Pact for Schools on tagesschau24:

New Working Paper: Positions of Political Parties Affect the Public's Policy Preferences

Are the electorates’ policy preferences responsive to the positions of political parties? In a representative German survey, we inform randomized treatment groups about parties' positions on two family policies, child care subsidy and universal student aid. In both experiments, results show that the treatment aligns the preferences of specific partisan groups with their preferred party’s position on the policy.

Do Party Positions Affect the Public’s Policy Preferences? (with E. Grewenig, P. Lergetporer, and K. Werner). CESifo Working Paper 7579 / IZA Discussion Paper 12249, March 2019

New Working Paper: Does Incentivization Improve Belief Elicitation in Large-Scale Surveys?

A large literature studies subjective beliefs about economic facts using unincentivized survey questions. We devise randomized experiments in a representative online survey to investigate whether incentivizing belief accuracy affects stated beliefs about average earnings by professional degree and average public school spending. Incentive provision does not impact earnings beliefs, but improves school-spending beliefs. Response patterns suggest that the latter effect likely reflects increased online-search activity. Consistently, an experiment that just encourages search-engine usage produces very similar results. Another experiment provides no evidence of experimenter-demand effects. Overall, results suggest that incentive provision does not reduce bias in our survey-based belief measures.

Incentives, Search Engines, and the Elicitation of Subjective Beliefs: Evidence from Representative Online Survey Experiments (with E. Grewenig, P. Lergetporer, K. Werner). CESifo Working Paper 7556 / IZA Discussion Paper 12175, March 2019

New Newsletter 1/2019 of the ifo Center for the Economics of Education Has Been Published

February 2019

New Working Paper on Public Preferences for University Tuition

Public preferences for charging tuition are important for determining higher education finance. Using survey experiments implemented in representative samples of the German electorate (N>19,500), our new study analyzes determinants of the public’s preferences for charging tuition. We find that information about the university earnings premium turns a public plurality against tuition into a plurality supporting it. Over 60 percent of Germans support deferred, income-contingent university tuition.

The Political Economy of Higher Education Finance: How Information and Design Affect Public Preferences for Tuition (with P. Lergetporer). CESifo Working Paper 7536 / IZA Discussion Paper 12175, February 2019

Paper Discussing Apprenticeship Education Published in JERO Special Issue in Honor of Wilfried Bos

Facing the Life-Cycle Trade-off between Vocational and General Education in Apprenticeship Systems: An Economics-of-Education Perspective. Journal for Educational Research Online 11 (1): 31-46, 2019

January 2019

A Blog on Aeon about our Work on Protestantism and Suicide

Economics Helps Explain Why Suicide Is More Common among Protestants (with S.O. Becker). Aeon, 14.1.2019

A Short Policy Brief on our Work on Vocational and General Education over the Life-Cycle

How Vocational and General Education Affect the Labor-Market Life-Cycle. EENEE Policy Brief 1/2019

Appointment to JEP Advisory Board

I have been appointed to the Advisory Board of the Journal of Economic Perspectives.

News 2018