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Tuition Fees, Student Finances, and Student Achievement: Evidence from a Differential Raise in Fees

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  • Hans Fricke

Abstract

This study analyzes the effects of an increase in the cost of going to college on student finances and achievement. It exploits a unique policy change at a Swiss university whereby students faced an unexpected increase in tuition fees. This increase differed across students. The study uses this variation in a difference-in-differences strategy to identify and estimate the causal effect of the differential increase in fees. Results based on survey data suggest that students compensate for the increase in fees with a reduction in consumption spending. In line with this finding, the estimated effects on on-time graduation, credits earned, and grades, based on data from administrative student records, are close to zero and insignificant.

Suggested Citation

  • Hans Fricke, 2018. "Tuition Fees, Student Finances, and Student Achievement: Evidence from a Differential Raise in Fees," Journal of Human Capital, University of Chicago Press, vol. 12(3), pages 504-541.
  • Handle: RePEc:ucp:jhucap:doi:10.1086/698132
    DOI: 10.1086/698132
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    Cited by:

    1. Francesca Modena & Giulia Martina Tanzi & Enrico Rettore, 2018. "The effect of grants on university drop-out rates: evidence on the Italian case," Temi di discussione (Economic working papers) 1193, Bank of Italy, Economic Research and International Relations Area.
    2. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).

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