Abstract
A well-functioning education system is characterised by a high level of student achievement and by providing equal opportunities to succeed irrespective of one’s socio-economic background. Using data from standardised achievement tests and on social mobility, we show that the German education system falls short in both dimensions. While achievement rose after the PISA shock in the early 2000s, it has been declining steadily over the past decade. Furthermore, attendance rates for high-track schools (Gymnasium) differ by as much as 60 percentage points across socio-economic groups, illustrating the lack of equal opportunities. We present policy recommendations aimed at addressing the identified shortcomings and improving the current situation.