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Does More Generous Student Aid Increase Enrolment Rates into Higher Education?: Evaluating the German Student Aid Reform of 2001

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  • Hans J. Baumgartner
  • Viktor Steiner

Abstract

Students from low-income families are eligible to student aid under the federal students' financial assistance scheme (BAfoeG) in Germany. We evaluate the effectiveness of a recent reform of student aid that substantially increased the amount received by eligible students to raise enrolment rates into tertiary education. We view this reform as a 'natural experiment' and apply the difference-in-difference methodology using a discrete-time hazard rate model to estimate the causal effect on enrolment rates into higher education. We find that the reform had a small positive but statistically insignificant effect on enrolment rates.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.44113.de/dp563.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 563.

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Length: 23 p.
Date of creation: 2006
Date of revision:
Handle: RePEc:diw:diwwpp:dp563

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Keywords: Educational transitions; educational finance; natural experiment and difference-indifference estimation;

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References

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  1. Ira N. Gang & Klaus F. Zimmermann, 1999. "Is Child Like Parent? Educational Attainment and Ethnic Origin," Departmental Working Papers 199614, Rutgers University, Department of Economics.
  2. Bridget Terry Long, 2003. "The Impact of Federal Tax Credits for Higher Education Expenses," NBER Working Papers 9553, National Bureau of Economic Research, Inc.
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  6. Dynarski, Susan, 2001. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," Working Paper Series rwp01-034, Harvard University, John F. Kennedy School of Government.
  7. 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.
  8. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-61, April.
  9. John Shea, 1997. "Does Parents' Money Matter?," NBER Working Papers 6026, National Bureau of Economic Research, Inc.
  10. Thomas J. Kane, 1995. "Rising Public College Tuition and College Entry: How Well Do Public Subsidies Promote Access to College?," NBER Working Papers 5164, National Bureau of Economic Research, Inc.
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Cited by:
  1. Andersson, Christian & Johansson, Per, 2009. "Social stratification and out-of-school learning," Working Paper Series 2009:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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