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Who bears the brunt: Tuition fees and educational mismatch

Author

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  • Theresa Geißler

    (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University)

Abstract

Exploiting the quasi-experimental introduction of tuition fees in selected federal states of Germany between 2006 and 2014, this study investigates how these fees affect the likelihood of overeducation based on data from the SOEP. Reporting lower bound estimates, the findings show that graduates from fee-charging states are significantly more likely to experience overeducation. There is suggestive evidence that the Intention to Treat Effect (ITT) may be heterogeneous depending on occupational choice after graduation, socioeconomic background and duration of the treatment. Moreover, dynamic analyses reveal that the increase in the likelihood of overeducation due to tuition fee exposure is not short-term but persists for even up to ten years after degree completion.

Suggested Citation

  • Theresa Geißler, 2025. "Who bears the brunt: Tuition fees and educational mismatch," IAAEU Discussion Papers 202504, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    • Handle: RePEc:iaa:dpaper:202504
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    File URL: https://www.iaaeu.de/images/DiscussionPaper/2025_04.pdf
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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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