Does More Generous Student Aid Increase Enrolment Rates into Higher Education?: Evaluating the German Student Aid Reform of 2001
AbstractStudents 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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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 563.
Length: 23 p.
Date of creation: 2006
Date of revision:
Educational transitions; educational finance; natural experiment and difference-indifference estimation;
Other versions of this item:
- Baumgartner, Hans J. & Steiner, Viktor, 2006. "Does More Generous Student Aid Increase Enrolment Rates into Higher Education? Evaluating the German Student Aid Reform of 2001," IZA Discussion Papers 2034, Institute for the Study of Labor (IZA).
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- 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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