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The Enrollment Effect of Secondary School Fees in Post-War Germany

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Author Info
Riphahn, Regina T. () (University of Basel, DIW Berlin and IZA Bonn)

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Abstract

This study utilizes the heterogeneity of the fee abolition for West German secondary schools to identify its effect on enrollment and to obtain an estimate of the price elasticity of demand for education. The analysis is based on administrative school enrollment statistics as well as on representative individual-level data from three annual surveys of the German Mikrozensus. Estimates suggest that enrollment in Advanced Schools increased by about six percent due to the fee abolition, where the results are sensitive to the specification choice. The positive enrollment effect of fee abolition for women exceeds that for men. A fifty percent reduction in fees is associated with an overall change in enrollment rates by 3 percent, where the elasticity of the demand for females' education again exceeds that for males'.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1295.

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Length: 47 pages
Date of creation: Sep 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1295

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Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
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Related research
Keywords: school fees tuition enrollment demand for education natural experiment

Other versions of this item:

Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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References listed on IDEAS
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  1. Derek Neal, 2002. "How Vouchers Could Change the Market for Education," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 25-44, Fall. [Downloadable!] (restricted)
  2. Hidehiko Ichimura & Christopher Taber, 2002. "Semiparametric Reduced-Form Estimation of Tuition Subsidies," American Economic Review, American Economic Association, vol. 92(2), pages 286-292, May. [Downloadable!] (restricted)
    Other versions:
  3. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," IZA Discussion Papers 815, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Jorn-Steffen Pischke, 2003. "The Impact of Length of the School Year on Student Performance and Earnings: Evidence from the German Short School Year," NBER Working Papers 9964, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. 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. [Downloadable!] (restricted)
  6. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, 01. [Downloadable!] (restricted)
  7. Heckman, James J & Lochner, Lance & Taber, Christopher, 1998. "General-Equilibrium Treatment Effects: A Study of Tuition Policy," American Economic Review, American Economic Association, vol. 88(2), pages 381-86, May. [Downloadable!] (restricted)
    Other versions:
  8. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
  10. Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall. [Downloadable!] (restricted)
  11. Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March. [Downloadable!] (restricted)
  12. Andrea Ichino & Rudolf Winter-Ebmer, 2004. "The Long-Run Educational Cost of World War II," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 57-86, January. [Downloadable!]
  13. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, vol. 92(2), pages 279-285, May. [Downloadable!] (restricted)
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