New evidence on lifetime earnings from vocational training and higher education compared: the role of gender and career interruptions.

Education pays off! A recent study by the IAW on behalf of the Stuttgart Chamber of Industry and Commerce confirms that higher education leads to higher lifetime income and protects against unemployment. In particular, people without education are left behind at an early stage. A comparison between vocational training and higher education shows that higher education often pays off late in life (after the age of 40). On average, people who move up the educational ladder, i.e., those who continue their studies after vocational training or go on to obtain a master's degree or technician's certificate, earn similar amounts to those who study immediately after leaving school. Due to the longer educational phases, academics have to earn their lifetime income in a shorter period of time. Therefore, interruptions in employment are to be viewed particularly negatively and this can also influence the desire to have children.

Report (in German)