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Does tuition fee policy reform encourage poor children’s school enrolment? Evidence from Vietnam

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  • Khiem, Phuong Huu
  • Linh, Dinh Hong
  • Tai, Do Anh
  • Dung, Nguyen Dac

Abstract

Tuition fee exemptions and educational subsidies are significant tools for improving children’s educational attainment in developing countries. In 2010 the Vietnamese government changed public policy in an attempt to increase school enrolment rates and reduce the financial burden of education on poor households. Using a quasi-experimental difference-in-differences (DID) approach, with propensity score matching (PSM), this paper examines the effects of the 2010 policy reform on school enrolment rates at primary, secondary and high school levels. The three levels of education in Vietnam were separately assessed by this study. It was found that the policy improved enrolment rates at both primary and secondary levels (compulsory in Vietnam), while high school enrolment rates remained unaffected. One of the largest differences was identified within the ethnic minority groups and regional border areas. Minority groups preferred to enrol more than their ethnic majority counterparts at secondary and high school levels, but there was a significant gap between groups, where children from rural areas remained less likely to enrol overall, than children from urban areas. The cause for this may be that the tuition fees and subsidies only cover a small part of the total cost of education expenditure, or it may be part of a larger unseen opportunity cost equation that older children face when they come from poor backgrounds and have the chance to join the labour force.

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  • Khiem, Phuong Huu & Linh, Dinh Hong & Tai, Do Anh & Dung, Nguyen Dac, 2020. "Does tuition fee policy reform encourage poor children’s school enrolment? Evidence from Vietnam," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 109-124.
    • Handle: RePEc:eee:ecanpo:v:66:y:2020:i:c:p:109-124
    DOI: 10.1016/j.eap.2020.03.001
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