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The Role of Economic Factors, Including the Level of Tuition, in Individual University Participation Decisions in Canada

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Abstract

The study uses individual data from the Canadian Labour Force Survey to consider economic factors in university participation decisions by persons aged 17-24 from 1976 to 2003. The level of real tuition is one economic factor that may affect the university participation decision. There is also regional variation in the opportunity cost of university attendance; in the reduction in the probability of unemployment after obtaining a university degree; and in the proportion of university budgets used for financial support of students. In addition, there is some national variation by gender and over time in the return to a university education. This study finds that higher tuition levels in the 1990s did reduce the probability of university participation by persons aged 17,18 or 19 relative to a province-specific trend increase in university participation. Before drawing a policy conclusion from this result, it would be necessary to consider what the trend terms represent in the university participation decision.

Suggested Citation

  • D. Johnson, F. Rahman, 2005. "The Role of Economic Factors, Including the Level of Tuition, in Individual University Participation Decisions in Canada," Working Papers eg0044, Wilfrid Laurier University, Department of Economics, revised 2005.
    • Handle: RePEc:wlu:wpaper:eg0044
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    Cited by:

    1. Mikola, Derek & Webb, Matthew D., 2023. "Finish it and it is free: An evaluation of college graduation subsidies," Economics of Education Review, Elsevier, vol. 93(C).
    2. Louis N. Christofides & Michael Hoy & Ling Yang, 2006. "The Determinants of University Participation," Working Papers 0608, University of Guelph, Department of Economics and Finance.
    3. Louis N. Christofides & Michael Hoy & Ling Yang, 2008. "The Gender Imbalance in Participation in Canadian Universities (1977-2005)," University of Cyprus Working Papers in Economics 5-2008, University of Cyprus Department of Economics.
    4. Louis N. Christofides & Michael Hoy & Joniada Milla & Thanasis Stengos, 2012. "The Implication of Peer and Parental Influences on University Attendance: A Gender Comparison," Working Papers 1201, University of Guelph, Department of Economics and Finance.
    5. Michael B. Coelli, 2009. "Tuition fees and equality of university enrolment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 1072-1099, August.
    6. Christofides, Louis N. & Hoy, Michael & Yang, Ling, 2010. "Participation in Canadian Universities: The gender imbalance (1977-2005)," Economics of Education Review, Elsevier, vol. 29(3), pages 400-410, June.
    7. Frederick Ploeg & Reinhilde Veugelers, 2008. "Higher Education Reform and the Renewed Lisbon Strategy: Role of Member States and the European Commission," Springer Books, in: George Gelauff & Isabel Grilo & Arjan Lejour (ed.), Subsidiarity and Economic Reform in Europe, chapter 5, pages 65-96, Springer.
    8. Louis N. Christofides & Michael Hoy & Ling Yang, 2006. "The Gender Imbalance in Participation in Canadian Universities (1977-2003)," Working Papers 0610, University of Guelph, Department of Economics and Finance.
    9. K. Bruce Newbold & W. Mark Brown, 2015. "The Urban–Rural Gap In University Attendance: Determinants Of University Participation Among Canadian Youth," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 585-608, September.
    10. Christofides, Louis N. & Hoy, Michael & Milla, Joniada & Stengos, Thanasis, 2012. "Grades, Aspirations and Post-Secondary Education Outcomes," IZA Discussion Papers 6867, Institute of Labor Economics (IZA).
    11. Reinhilde Veugelers & Frederick Van der Ploeg, 2008. "Reforming European Universities: Scope for an Evidence-Based Process," CESifo Working Paper Series 2298, CESifo.
    12. Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.

    More about this item

    Keywords

    tuition fees; enrollment;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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