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Tuition Fees and Student Effort at University

Author

Listed:
  • P. Beneito
  • J.E. Boscá
  • J. Ferri

Abstract

This paper presents theoretical and empirical evidence that an increase in tuition fees may boost university students' academic effort. We examine the tuition fee rise introduced in 2012 by Spanish universities, where students register and pay for their chosen modules and fees increase each time students retake a module until they pass it. Data refer to students of economics, business and medicine at the University of Valencia during 2010-2014. The fact that some students pay fees in full while others are exempt from payment provides an identifying source of variation that we exploit using a flexible difference-in-differences methodology.

Suggested Citation

  • P. Beneito & J.E. Boscá & J. Ferri, 2016. "Tuition Fees and Student Effort at University," Policy Papers 2016-23, FEDEA.
    • Handle: RePEc:fda:fdapop:2016-23
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    Cited by:

    1. Daniel Aparicio-Pérez & Maria Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2021. "Politics against Economics: The Case of Spanish Regional Financing," Working Papers 2021/15, Economics Department, Universitat Jaume I, Castellón (Spain).
    2. Ferreyra, Maria Marta & Garriga, Carlos & Martin-Ocampo, Juan David & Sanchez-Diaz, Angelica Maria, 2024. "The limited impact of free college policies," European Economic Review, Elsevier, vol. 168(C).
    3. Antonio Cabrales & Maia Güell & Rocio Madera & Analía Viola, 2019. "Income contingent university loans: Policy design and an application to Spain," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(99), pages 479-521.
    4. José Montalbán, 2019. "Countering moral hazard in higher education: The role of performance incentives in need-based grants," PSE Working Papers halshs-02160365, HAL.
    5. Matsuda, Kazushige & Mazur, Karol, 2022. "College education and income contingent loans in equilibrium," Journal of Monetary Economics, Elsevier, vol. 132(C), pages 100-117.
    6. Antonio Cabrales & Maia Güell & Rocio Madera & Analia Viola, 2024. "University financing: sustainability, efficiency and redistribution," Policy Papers 2024-01, FEDEA.
    7. Meier, Dennis H. & Thomsen, Stephan L. & Trunzer, Johannes, 2022. "The Financial Situation of Students During the COVID-19 Pandemic," Hannover Economic Papers (HEP) dp-696, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    8. Henao, Leandro & Berens, Johannes & Schneider, Kerstin, 2023. "Tuition Fees and Academic (In)Activity in Higher Education: How Did Students Adjust to the Abolition of Tuition Fees in Germany?," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277578, Verein für Socialpolitik / German Economic Association.
    9. Ferreyra,Maria Marta & Garriga,Carlos & Martin,Juan David & Sanchez Diaz,Angelica Maria, 2020. "Raising College Access and Completion : How Much Can Free College Help ?," Policy Research Working Paper Series 9428, The World Bank.
    10. Berens, Johannes & Henao, Leandro & Schneider, Kerstin, 2024. "Tuition fees and academic (in)activity in higher education: How did students adjust to the abolition of tuition fees in Germany?," Ruhr Economic Papers 1074, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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