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Do tuition fees affect the mobility of university applicants? Evidence from a natural experiment

  • Dwenger, Nadja
  • Storck, Johanna
  • Wrohlich, Katharina

Several German states recently introduced tuition fees for university education. We investigate whether these tuition fees influence the mobility of university applicants. Based on administrative data of applicants for medical schools in Germany, we estimate the effect of tuition fees on the probability of applying for a university in the home state. We find a small but significant reaction: The probability of applying for a university in the home state falls by 2 percentage points (baseline: 69%) for high-school graduates who come from a state with tuition fees. Moreover, we find that students with better high-school grades react more strongly to tuition fees. This might have important effects on the composition of students across states.

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Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 31 (2012)
Issue (Month): 1 ()
Pages: 155-167

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Handle: RePEc:eee:ecoedu:v:31:y:2012:i:1:p:155-167
Contact details of provider: Web page: http://www.elsevier.com/locate/econedurev

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  1. Mixon, Franklin Jr & Hsing, Yu, 1994. "The determinants of out-of-state enrollments in higher education: A tobit analysis," Economics of Education Review, Elsevier, vol. 13(4), pages 329-335.
  2. Gabrielle Demange, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo, vol. 54(2), pages 248-276, June.
  3. Spiess, C. Katharina & Wrohlich, Katharina, 2008. "Does Distance Determine Who Attends a University in Germany?," IZA Discussion Papers 3615, Institute for the Study of Labor (IZA).
  4. Kemnitz, Alexander, 2007. "Educational Federalism and the Quality Effects of Tuition Fees," Dresden Discussion Paper Series in Economics 08/07, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
  5. Braun Sebastian & Dwenger Nadja & Kübler Dorothea, 2010. "Telling the Truth May Not Pay Off: An Empirical Study of Centralized University Admissions in Germany," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-38, March.
  6. Michael J. Rizzo & Ronald G. Ehrenberg, 2003. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Working Papers 9516, National Bureau of Economic Research, Inc.
  7. Douglas Dotterweich & Edward Baryla, 2005. "Non-resident Tuition and Enrollment in Higher Education: Implications for Tuition Pricing," Education Economics, Taylor & Francis Journals, vol. 13(4), pages 375-385.
  8. Tim Krieger & Thomas Lange, 2010. "Education policy and tax competition with imperfect student and labor mobility," International Tax and Public Finance, Springer, vol. 17(6), pages 587-606, December.
  9. Mchugh, Richard & Morgan, James N., 1984. "The determinants of interstate student migration: a place-to-place analysis," Economics of Education Review, Elsevier, vol. 3(4), pages 269-278, August.
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