Early Careers of Graduates from Private and Public Universities in Germany: A Comparison of Income Differences Regarding the First Employment

Abstract

Research estimating the outcomes of higher education in Germany has widely ignored the private educational sector. This study focuses on labour market returns in terms of the income of graduates from private higher education institutions in Germany. Using data from the National Education Panel Study (NEPS) the results of the Bayesian regression analysis indicate a moderate wage premium for private students compared to students who are enrolled in public higher education institutions regarding the first employment. Despite the predominant role of public universities in Germany, graduates of private higher education institutions receive similar advantages on the labour market as their counterparts in other countries, although private education in other countries is more prestigious.