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Do Tuition Fees Affect the Mobility of University Applicants?: Evidence from a Natural Experiment

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  • Nadja Dwenger
  • Johanna Storck
  • Katharina Wrohlich

Abstract

Several German states recently introduced tuition fees for university education. We investigate whether these tuition fees influence the mobility of university applicants. Based on administrative data of applicants for medical schools in Germany, we estimate the effect of tuition fees on the probability of applying for a university in the home state. We find a small but significant reaction: The probability of applying for a university in the home state falls by 2 percentage points (baseline: 69%) for high-school graduates who come from a state with tuition fees. Moreover, we find that students with lower high-school grades react more strongly to tuition fees. This might have important effects on the composition of students across states.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.341754.de/dp926.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 926.

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Length: 25 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwwpp:dp926

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Keywords: mobility of high-school graduates; tuition fees; natural experiment;

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References

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  1. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  2. Spiess, C. Katharina & Wrohlich, Katharina, 2008. "Does Distance Determine Who Attends a University in Germany?," IZA Discussion Papers 3615, Institute for the Study of Labor (IZA).
  3. Sebastian Braun & Nadja Dwenger & Dorothea Kübler, 2007. "Telling the Truth May Not Pay Off: An Empirical Study of Centralised University Admissions in Germany," SFB 649 Discussion Papers SFB649DP2007-070, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  4. Michael J. Rizzo & Ronald G. Ehrenberg, 2003. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Working Papers 9516, National Bureau of Economic Research, Inc.
  5. Douglas Dotterweich & Edward Baryla, 2005. "Non-resident Tuition and Enrollment in Higher Education: Implications for Tuition Pricing," Education Economics, Taylor & Francis Journals, vol. 13(4), pages 375-385.
  6. Tim Krieger & Thomas Lange, 2008. "Education policy and tax competition with imperfect student and labor mobility," Working Papers CIE 8, University of Paderborn, CIE Center for International Economics.
  7. Mchugh, Richard & Morgan, James N., 1984. "The determinants of interstate student migration: a place-to-place analysis," Economics of Education Review, Elsevier, vol. 3(4), pages 269-278, August.
  8. Demange, Gabrielle & Fenge, Robert & Uebelmesser, Silke, 2008. "The Provision of Higher Education in a Global World - Analysis and Policy Implications," CEPREMAP Working Papers (Docweb) 0806, CEPREMAP.
  9. Mixon, Franklin Jr & Hsing, Yu, 1994. "The determinants of out-of-state enrollments in higher education: A tobit analysis," Economics of Education Review, Elsevier, vol. 13(4), pages 329-335.
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Citations

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Cited by:
  1. Timo Mitze & Claudia Burgard & Bjoern Alecke, 2013. "The Effect of Tuition Fees on Student Enrollment and Location Choice: Interregional Migration, Border Effects and Gender Differences," ERSA conference papers ersa13p883, European Regional Science Association.
  2. Björn Kauder & Niklas Potrafke, 2013. "Government Ideology and Tuition Fee Policy: Evidence from the German States," CESifo Economic Studies, CESifo, vol. 59(4), pages 628-649, December.
  3. Horstschräer, Julia, 2011. "University rankings in action? The importance of rankings and an excellence competition for university choice of high-ability students?," ZEW Discussion Papers 11-061, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Kerstin Bruckmeier & Berthold U. Wigger, 2013. "The Effects of Tuition Fees on Transition from High School to University in Germany," CESifo Working Paper Series 4237, CESifo Group Munich.
  5. Wolfram F. Richter & Berthold U. Wigger, 2012. "Besteuerung des Humanvermögens," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 82-102, 02.
  6. Horstschräer, Julia, 2012. "Decentralizing university admission: Evidence from a natural experiment," ZEW Discussion Papers 12-076, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Haupt, Alexander & Krieger, Tim & Lange, Thomas, 2013. "Education policy, student migration, and brain gain," Discussion Paper Series 2013-05, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
  8. Mira Fischer & Patrick Kampkoetter, 2014. "Striving for Excellence: University Competition, Quality Perceptions, and Ability Sorting," Cologne Graduate School Working Paper Series 05-01, Cologne Graduate School in Management, Economics and Social Sciences.

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