Enrolment into Higher Education and Changes in Repayment Obligations of Student Aid: Microeconometric Evidence for Germany
AbstractWe evaluate the effect of the federal students' financial assistance scheme (BAfoeG) on enrolment rates into higher education by exploiting the exogenous variation introduced through a discrete shift in the repayment regulations. Supported students had to repay the full loan until 1990. Thereafter, 50 percent of the student aid has been offered as a non-repayable grant. Our results from simple difference-in-difference estimates suggest that student aid is ineffective in raising enrolment rates. Our findings may have important implications for the current debate on the reform of financing higher education in Germany and elsewhere.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 444.
Length: 25 p.
Date of creation: 2004
Date of revision:
Educational decision; Educational finance; Higher education; Difference-in-difference; Discrete-choice;
Other versions of this item:
- Hans J. Baumgartner & Viktor Steiner, 2004. "Enrolment into Higher Education and Changes in Repayment Obligations of Student Aid – Microeconometric Evidence for Germany," HEW 0410003, EconWPA.
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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