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Tuition fees and the demand for university places


  • Neill, Christine


Estimating the effect of tuition fee increases on demand for a university education is complicated by the potential endogeneity of tuition fees. The relative homogeneity of university tuition fees within Canadian provinces and the role of provincial governments in university funding and policies, provides an opportunity to use changes in the political party in power to identify plausibly exogenous changes in tuition fees. System estimates that take into account endogeneity of fees show large effects relative to single equation estimates, and to previous Canadian studies - a C$1000 increase in university tuition fees is estimated to reduce the enrolment rate by between 2.5 and 5 percentage points.

Suggested Citation

  • Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
  • Handle: RePEc:eee:ecoedu:v:28:y:2009:i:5:p:561-570

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    References listed on IDEAS

    1. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association, vol. 53(3), pages 629-662, September.
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    5. Lowry, Robert C., 2001. "The effects of state political interests and campus outputs on public university revenues," Economics of Education Review, Elsevier, vol. 20(2), pages 105-119, April.
    6. Bound, John & Turner, Sarah, 2007. "Cohort crowding: How resources affect collegiate attainment," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 877-899, June.
    7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    8. Stephen V. Cameron & James J. Heckman, 2001. "The Dynamics of Educational Attainment for Black, Hispanic, and White Males," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 455-499, June.
    9. Christopher M. Cornwell & David B. Mustard & Deepa Sridhar, 2005. "The Enrollment Effects of Merit-Based Financial Aid: Evidence from Georgia's HOPE Scholarship," HEW 0501002, EconWPA.
    10. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
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