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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. 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.
  2. Braun Sebastian & Dwenger Nadja & Kübler Dorothea, 2010. "Telling the Truth May Not Pay Off: An Empirical Study of Centralized University Admissions in Germany," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-38, March.
  3. 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.
  4. Michael Rizzo & Ronald G. Ehrenberg, 2004. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 303-354 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. Spiess, C. Katharina & Wrohlich, Katharina, 2010. "Does distance determine who attends a university in Germany?," Economics of Education Review, Elsevier, vol. 29(3), pages 470-479, June.
  7. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  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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Cited by:
  1. Horstschräer, Julia, 2012. "University rankings in action? The importance of rankings and an excellence competition for university choice of high-ability students," Economics of Education Review, Elsevier, vol. 31(6), pages 1162-1176.
  2. 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.
  3. Björn Kauder & Niklas Potrafke, 2013. "Government Ideology and Tuition Fee Policy: Evidence from the German States," CESifo Working Paper Series 4205, CESifo Group Munich.
  4. 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.
  5. 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.
  6. Wolfram F. Richter & Berthold U. Wigger, 2012. "Besteuerung des Humanvermögens," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(1-2), pages 82-102, 02.
  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. 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.

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