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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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  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Bruce D. Meyer, 1994. "Natural and Quasi- Experiments in Economics," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0170, National Bureau of Economic Research, Inc.
  3. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, American Economic Association, vol. 92(2), pages 279-285, May.
  4. Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, American Economic Association, vol. 93(1), pages 279-288, March.
  5. Shea, John, 2000. "Does parents' money matter?," Journal of Public Economics, Elsevier, Elsevier, vol. 77(2), pages 155-184, August.
  6. Hans J. Baumgartner & Viktor Steiner, 2004. "Enrolment into Higher Education and Changes in Repayment Obligations of Student Aid – Microeconometric Evidence for Germany," HEW, EconWPA 0410003, EconWPA.
  7. Ira N. Gang & Klaus F. Zimmermann, 1999. "Is Child Like Parent? Educational Attainment and Ethnic Origin," Departmental Working Papers, Rutgers University, Department of Economics 199614, Rutgers University, Department of Economics.
  8. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 780, Princeton University, Department of Economics, Industrial Relations Section..
  9. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
  10. Anders Skrondal & Sophia Rabe-Hesketh, 2007. "Latent Variable Modelling: A Survey," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 34(4), pages 712-745.
  11. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, Elsevier, vol. 24(1-2), pages 63-132.
  12. 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. Christian Andersson & Per Johansson, 2013. "Social stratification and out-of-school learning," Journal of the Royal Statistical Society Series A, Royal Statistical Society, Royal Statistical Society, vol. 176(3), pages 679-701, 06.

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