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Did Tuition Fees in Germany Constrain Students' Budgets? New Evidence from a Natural Experiment

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  • Thomsen, Stephan L.

    (Leibniz University of Hannover)

  • von Haaren, Friederike

    (NIW Hannover, Leibniz Universität Hannover)

Abstract

Less than a decade ago, several German states introduced tuition fees for university education. Despite their comparatively low level, fees were perceived by the public to increase social injustice, and have been abolished. Whereas other studies have shown no effect on enrollment, we analyze the effects on students' budgets. To identify causal effects, we exploited the natural experiment established by the introduction of fees. They did not affect students' spending behavior independently of social background, but females experienced a small negative effect. Effects on other outcomes indicate that students increased their budgets only marginally; fees did not increase social inequality.

Suggested Citation

  • Thomsen, Stephan L. & von Haaren, Friederike, 2014. "Did Tuition Fees in Germany Constrain Students' Budgets? New Evidence from a Natural Experiment," IZA Discussion Papers 8623, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8623
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    References listed on IDEAS

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    Cited by:

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    2. Lergetporer, Philipp & Woessmann, Ludger, 2019. "The Political Economy of Higher Education Finance: How Information and Design Affect Public Preferences for Tuition," Rationality and Competition Discussion Paper Series 145, CRC TRR 190 Rationality and Competition.
    3. Henao, Leandro & Berens, Johannes & Schneider, Kerstin, 2023. "Tuition Fees and Academic (In)Activity in Higher Education: How Did Students Adjust to the Abolition of Tuition Fees in Germany?," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277578, Verein für Socialpolitik / German Economic Association.
    4. Thomsen, Stephan L. & Trunzer, Johannes, 2020. "Did the Bologna Process Challenge the German Apprenticeship System? Evidence from a Natural Experiment," IZA Discussion Papers 13806, Institute of Labor Economics (IZA).
    5. Didier Fouarge & Merve Nezihe Özer & Philipp Seegers, 2019. "Personality traits, migration intentions, and cultural distance," Papers in Regional Science, Wiley Blackwell, vol. 98(6), pages 2425-2454, December.
    6. Egorov, Aleksei V. (Егоров, Алексей В.) & Borzykh, Olga A. (Борзых, Ольга А.), 2018. "Asymmetric Interest Rate Pass-Through in Russia [Асимметрия Процентного Канала Денежной Трансмиссии В России]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 92-121, February.
    7. Meyer, Tobias & Thomsen, Stephan, 2015. "New Evidence on the Effects of the Shortened School Duration in the German States - An Evaluation of Post-School Education Decisions," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112910, Verein für Socialpolitik / German Economic Association.
    8. Ostapenko, Roman I., 2020. ""Word cloud" as a graphical supplement to a scientific article," Economic Consultant, Roman I. Ostapenko, vol. 32(4), pages 4-4.
    9. Serguei MIKHAILITCHENKO, 2017. "Economic structure of educational process and its implications for the higher education reform," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 69-82, Spring.
    10. Serguei MIKHAILITCHENKO, 2017. "Economic structure of educational process and its implications for the higher education reform," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 69-82, Spring.

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    More about this item

    Keywords

    tuition fees; student spending; natural experiment; Germany;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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