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Does More Generous Student Aid Increase Enrolment Rates into Higher Education?: Evaluating the German Student Aid Reform of 2001


  • Hans J. Baumgartner
  • Viktor Steiner


Students from low-income families are eligible to student aid under the federal students' financial assistance scheme (BAfoeG) in Germany. We evaluate the effectiveness of a recent reform of student aid that substantially increased the amount received by eligible students to raise enrolment rates into tertiary education. We view this reform as a 'natural experiment' and apply the difference-in-difference methodology using a discrete-time hazard rate model to estimate the causal effect on enrolment rates into higher education. We find that the reform had a small positive but statistically insignificant effect on enrolment rates.

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  • Hans J. Baumgartner & Viktor Steiner, 2006. "Does More Generous Student Aid Increase Enrolment Rates into Higher Education?: Evaluating the German Student Aid Reform of 2001," Discussion Papers of DIW Berlin 563, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp563

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    Cited by:

    1. Elvana Hana & Arsena Gjipali, 2010. "What Determines Upper Secondary School Participation? - Intergenerational Effects Of Education Outcomes In Albania," Journal Articles, Center For Economic Analyses, pages 17-31, June.
    2. Stefanie P. Herber & Michael Kalinowski, 2016. "Non-Take-Up of Student Financial Aid: A Microsimulation for Germany," SOEPpapers on Multidisciplinary Panel Data Research 844, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Regina Riphahn & Florian Schieferdecker, 2012. "The transition to tertiary education and parental background over time," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(2), pages 635-675, January.
    4. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of student financial aid: A microsimulation for Germany," BERG Working Paper Series 109, Bamberg University, Bamberg Economic Research Group.
    5. Avdic, Daniel & Gartell, Marie, 2015. "Working while studying? Student aid design and socioeconomic achievement disparities in higher education," Labour Economics, Elsevier, vol. 33(C), pages 26-40.
    6. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of Student Financial Aid: A Microsimulation for Germany," Annual Conference 2016 (Augsburg): Demographic Change 145727, Verein für Socialpolitik / German Economic Association.
    7. Christian Andersson & Per Johansson, 2013. "Social stratification and out-of-school learning," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(3), pages 679-701, June.
    8. Blanco, Christian & Meneses, Francisco, 2013. "Impacto de la ayuda financiera en la matrícula técnica y universitaria
      [Impact of financial aid in higher education enrollment in Chile]
      ," MPRA Paper 32025, University Library of Munich, Germany, revised Oct 2012.
    9. Loris Vergolini & Nadir Zanini & Nicola Bazoli, 2014. "Liquidity Constraints and University Participation in Times of Recession. Evidence from a Small-scale Programme," FBK-IRVAPP Working Papers 2014-11, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    10. Vincent Vandenberghe, 2007. "Family Income and Tertiary Education Attendance across the EU: An empirical assessment using sibling data," CASE Papers case123, Centre for Analysis of Social Exclusion, LSE.
    11. Andres Silva & Lindsey M. Higgins & Micaela M. Kulesz, 2016. "Nutritional Impact of Child-Directed TV Food Advertising Regulation: Are We Rearranging the Deck Chairs on the Titanic?," Journal of the Association for Consumer Research, University of Chicago Press, vol. 1(3), pages 422-444.

    More about this item


    Educational transitions; educational finance; natural experiment and difference-indifference estimation;

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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