Template-Type: ReDIF-Paper 1.0 Title: The Fall of the Aspirations Wall: Educational Aspirations, Achievement and Societal Change Author-Name: Ghazala Azmat Author-Email: ghazala.azmat@sciencespo.fr Author-Name: Katja M. Kaufmann Author-Email: kkaufman@uni-mainz.de Classification-JEL: I21, D72, D91 Keywords: Aspirations; education; perceived returns; economic, social and political preferences; psychological well-being; German Reunification. Abstract: We use the German Reunification “experiment” to study how an exogenously changed environment (from state socialism to capitalist democracy) a ects aspirations and future outcomes. We analyze whether, and how quickly, individuals’ educational aspirations adapt, their long-term impact and the underlying mechanisms. Using di erences across cohorts induced by Reunification timing, we show that shortly after, educational aspirations among high school students in East Germany increase substantially and translate into sizable increases of completing university entrance certificate five years later. Perceived educational returns, economic preferences (“consumerism”), socio-political attitudes (“individualism”) and psychological well-being adapt quickly and are directly linked to changes in aspirations. Note: Length: 46 Creation-Date: 2020-08 Revision-Date: File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp207 File-Format: application/pdf Handle: RePEc:bon:boncrc:CRCTR224_2020_207