Working Paper

The Effect of Preschool Attendance on Secondary School Track Choice in Germany - Evidence from Siblings

Martin Schlotter
ifo Institut für Wirtschaftsforschung, München, 2011

Ifo Working Paper No. 106

We study the effect of preschool attendance on secondary school track choice in Germany which is a crucial outcome that largely predicts educational pathways of children. Using data from the German Socio-Economic Panel, multivariate models show a significant positive association between years of preschool attendance and a child’s probability of attending the highest school track, that is, German Gymnasium. Including family fixed effects in a sibling model, our estimates become considerably smaller and are no longer significant, indicating an upward bias in multivariate models. Accounting for several sibling-specific covariates, such as measures of innate ability and social skills, does not change this result. The low intensity of Germany’s centerbased preschool system might be a reason for the zero effects.

JEL Classification: I200, J130, J240