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Did tuition fees in Germany constrain students’ budgets? New evidence from a natural experiment

Author

Listed:
  • Stephan Thomsen

    (NIW Hannover
    Leibniz Universität Hannover
    ZEW Mannheim
    IZA Bonn)

  • Friederike von Haaren-Giebel

    (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 of about €500 per semester, fees were perceived by the public to increase social injustice and have been abolished recently. 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. Tuition fees decrease total expenditure moderately by about 4 %. With regard to financial resources, students are more likely to receive support from parents or take out a loan. JEL codes: I22, I28, H75

Suggested Citation

  • Stephan Thomsen & Friederike von Haaren-Giebel, 2016. "Did tuition fees in Germany constrain students’ budgets? New evidence from a natural experiment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-25, December.
  • Handle: RePEc:spr:izaels:v:5:y:2016:i:1:d:10.1186_s40174-016-0054-5
    DOI: 10.1186/s40174-016-0054-5
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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. 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.
    4. 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.
    5. 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).
    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]," 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. 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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