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Do tuition fees affect enrollment behavior? Evidence from a ‘natural experiment’ in Germany

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  • Hübner, Malte

Abstract

This paper uses the introduction of tuition fees in seven of the sixteen German states in 2007 as a natural experiment to identify the effects of tuition prices on enrollment probabilities. Based on information on enrollment decisions of the entire population of high-school graduates between 2002 and 2008, I find a negative effect of tuition fees on enrollment behavior. The effect is larger than in existing studies for European countries, but of a similar magnitude as effects identified with U.S. data. A potential spill-over effect of the policy intervention to the comparison group is accounted for by using the estimation results to calibrate a structural model of the enrollment decision.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 31 (2012)
Issue (Month): 6 ()
Pages: 949-960

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Handle: RePEc:eee:ecoedu:v:31:y:2012:i:6:p:949-960

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Web page: http://www.elsevier.com/locate/econedurev

Related research

Keywords: Tuition fees; Demand for higher education; Enrollment; Treatment effect;

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References

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  1. C. Katharina Spieß & Katharina Wrohlich, 2008. "Does Distance Determine Who Attends a University in Germany?," SOEPpapers on Multidisciplinary Panel Data Research 118, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  3. Steiner, Viktor & Wrohlich, Katharina, 2008. "Financial Student Aid and Enrollment into Higher Education: New Evidence from Germany," IZA Discussion Papers 3601, Institute for the Study of Labor (IZA).
  4. Susan Dynarski, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," NBER Working Papers 7756, National Bureau of Economic Research, Inc.
  5. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  6. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, vol. 92(2), pages 279-285, May.
  7. Canton, Erik & de Jong, Frank, 2005. "The demand for higher education in The Netherlands, 1950-1999," Economics of Education Review, Elsevier, vol. 24(6), pages 651-663, December.
  8. Fredriksson, Peter, 1997. " Economic Incentives and the Demand for Higher Education," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 129-42, March.
  9. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association, vol. 53(n. 3), pages 629-62, September.
  10. David Deming & Susan Dynarski, 2009. "Into College, Out of Poverty? Policies to Increase the Postsecondary Attainment of the Poor," NBER Working Papers 15387, National Bureau of Economic Research, Inc.
  11. Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
  12. Mixon, Franklin Jr & Hsing, Yu, 1994. "The determinants of out-of-state enrollments in higher education: A tobit analysis," Economics of Education Review, Elsevier, vol. 13(4), pages 329-335.
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Citations

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Cited by:
  1. Ehlers, Tim, 2011. "University graduation dependent on family's wealth, ability and social status," Center for European, Governance and Economic Development Research Discussion Papers 120, University of Goettingen, Department of Economics.
  2. Denny, Kevin, 2014. "The effect of abolishing university tuition costs: Evidence from Ireland," Labour Economics, Elsevier, vol. 26(C), pages 26-33.
  3. Ehlers, Tim, 2011. "University graduation dependent on family's wealth, ability and social status," Center for European, Governance and Economic Development Research Discussion Papers 120, University of Goettingen, Department of Economics.
  4. Mira Fischer & Patrick Kampkoetter, 2014. "Striving for Excellence: University Competition, Quality Perceptions, and Ability Sorting," Cologne Graduate School Working Paper Series 05-01, Cologne Graduate School in Management, Economics and Social Sciences.
  5. Fabio Berton & Daniele Bondonio, 2014. "The Impact of Degree Duration on Higher Education Participation: Evidence from a Large-Scale Natural Experiment," LABORatorio R. Revelli Working Papers Series 137, LABORatorio R. Revelli, Centre for Employment Studies.

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