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The end of free college in England: Implications for enrolments, equity, and quality

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  • Murphy, Richard
  • Scott-Clayton, Judith
  • Wyness, Gill

Abstract

Despite increasing financial pressures on higher education systems throughout the world, many governments remain resolutely opposed to the introduction of tuition fees, and some countries and states where tuition fees have been long established are now reconsidering free higher education. This paper examines the consequences of charging tuition fees on university enrolments, equity, and proxies for institutional quality. To do so, we study the English higher education system which has, in just two decades, moved from a free college system to one in which tuition fees are among the highest in the world. Our findings suggest that England's shift has resulted in increased funding per head and rising enrolments, with no apparent widening of the participation gap between advantaged and disadvantaged students. The role of fees is moderated by other key features of higher education finance which may differ across countries: in contrast to other systems with high tuition fees, the English system is distinct in that its income-contingent loan system ensures that no tuition fees are paid upfront, and provides students with comparatively generous assistance for living expenses. Still, the English experience provides an instructive case for other countries considering implementing or abolishing tuition fees.

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  • Murphy, Richard & Scott-Clayton, Judith & Wyness, Gill, 2019. "The end of free college in England: Implications for enrolments, equity, and quality," Economics of Education Review, Elsevier, vol. 71(C), pages 7-22.
  • Handle: RePEc:eee:ecoedu:v:71:y:2019:i:c:p:7-22
    DOI: 10.1016/j.econedurev.2018.11.007
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    1. Lergetporer, Philipp & Woessmann, Ludger, 2019. "The Political Economy of Higher Education Finance: How Information and Design Affect Public Preferences for Tuition," Rationality and Competition Discussion Paper Series 145, CRC TRR 190 Rationality and Competition.
    2. Jonneke Bolhaar & Sonny Kuijpers & Dinand Webbink & Maria Zumbuehl, 2023. "Does replacing grants by income-contingent loans harm enrolment? New evidence from a reform in Dutch higher education," CPB Discussion Paper 451, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Emilia Del Bono & Greta Morando, 2022. "For some, luck matters more: the impact of the great recession on the early careers of graduates from different socio-economic backgrounds [Cashier or consultant? Entry labor market conditions, fie," Oxford Economic Papers, Oxford University Press, vol. 74(3), pages 869-893.
    4. Bruce Chapman & Lorraine Dearden, 2022. "Income-contingent loans in higher education financing," IZA World of Labor, Institute of Labor Economics (IZA), pages 227-227, October.
    5. Gill Wyness, 2020. "Is higher education still worth the cost?," CEPEO Briefing Note Series 9, UCL Centre for Education Policy and Equalising Opportunities, revised Nov 2020.
    6. Campbell, Stuart & Macmillan, Lindsey & Murphy, Richard & Wyness, Gill, 2019. "Inequalities in student to course match: evidence from linked administrative data," LSE Research Online Documents on Economics 103413, London School of Economics and Political Science, LSE Library.
    7. Alexandre de Gendre & Jan Kabátek, 2021. "From subsidies to loans: The effects of a national student finance reform on the choices of secondary school students," Melbourne Institute Working Paper Series wp2021n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. Lergetporer, Philipp & Wößmann, Ludger, 2022. "Income Contingency and the Electorate's Support for Tuition," VfS Annual Conference 2022 (Basel): Big Data in Economics 264003, Verein für Socialpolitik / German Economic Association.
    9. Azmat Ghazala & Simion Ştefania, 2021. "Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 175-239, January.
    10. Gill Wyness, 2020. "Higher education applications and admissions," CEPEO Briefing Note Series 7, UCL Centre for Education Policy and Equalising Opportunities, revised Aug 2020.
    11. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).
    12. Stuart Campbell & Lindsey Macmillan & Richard Murphy & Gill Wyness, 2022. "Matching in the Dark? Inequalities in Student to Degree Match," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 807-850.
    13. Del Bono, Emilia & Morando, Greta, 2021. "For Some, Luck Matters More: The Impact of the Great Recession on the Early Careers of Graduates from Different Socio-Economic Backgrounds," IZA Discussion Papers 14540, Institute of Labor Economics (IZA).
    14. Ferreyra,Maria Marta & Garriga,Carlos & Martin,Juan David & Sanchez Diaz,Angelica Maria, 2020. "Raising College Access and Completion : How Much Can Free College Help ?," Policy Research Working Paper Series 9428, The World Bank.
    15. Molina, Teresa & Rivadeneyra, Ivan, 2021. "The schooling and labor market effects of eliminating university tuition in Ecuador," Journal of Public Economics, Elsevier, vol. 196(C).
    16. Ghazala Azmat & Ştefania Simion, 2021. "Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes," SciencePo Working papers Main hal-03873819, HAL.
    17. Lergetporer, Philipp & Woessmann, Ludger, 2023. "Earnings information and public preferences for university tuition: Evidence from representative experiments," Journal of Public Economics, Elsevier, vol. 226(C).
    18. Hügle, Dominik, 2021. "The decision to enrol in higher education," Discussion Papers 2021/8, Free University Berlin, School of Business & Economics.
    19. Ghazala Azmat & Ştefania Simion, 2021. "Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes," Post-Print hal-03873819, HAL.
    20. Hassani-Nezhad, Lena & Anderberg, Dan & Chevalier, Arnaud & Lührmann, Melanie & Pavan, Ronni, 2021. "Higher education financing and the educational aspirations of teenagers and their parents," Economics of Education Review, Elsevier, vol. 85(C).

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    More about this item

    Keywords

    Higher education; Financial aid; Tuition fees; Inequality;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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