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Do Tuition Fees Affect the Mobility of University Applicants? Evidence from a Natural Experiment

  • Dwenger, Nadja

    ()

    (DIW Berlin)

  • Storck, Johanna

    ()

    (DIW Berlin)

  • Wrohlich, Katharina

    ()

    (DIW Berlin)

Several German states recently introduced tuition fees for university education. We investigate whether these tuition fees influence the mobility of university applicants. Based on administrative data of applicants for medical schools in Germany, we estimate the effect of tuition fees on the probability of applying for a university in the home state. We find a small but significant reaction: The probability of applying for a university in the home state falls by 2 percentage points (baseline: 69%) for high-school graduates who come from a state with tuition fees. Moreover, we find that students with lower high-school grades react more strongly to tuition fees. This might have important effects on the composition of students across states.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4421.

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Length: 28 pages
Date of creation: Sep 2009
Date of revision:
Publication status: published in: Economics of Education Review, 2012, 31 (1), 155-167
Handle: RePEc:iza:izadps:dp4421
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  1. Mixon, Franklin Jr & Hsing, Yu, 1994. "The determinants of out-of-state enrollments in higher education: A tobit analysis," Economics of Education Review, Elsevier, vol. 13(4), pages 329-335.
  2. Michael Rizzo & Ronald G. Ehrenberg, 2004. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Chapters, in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 303-354 National Bureau of Economic Research, Inc.
  3. Douglas Dotterweich & Edward Baryla, 2005. "Non-resident Tuition and Enrollment in Higher Education: Implications for Tuition Pricing," Education Economics, Taylor & Francis Journals, vol. 13(4), pages 375-385.
  4. Braun Sebastian & Dwenger Nadja & Kübler Dorothea, 2010. "Telling the Truth May Not Pay Off: An Empirical Study of Centralized University Admissions in Germany," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-38, March.
  5. Alexander Kemnitz, 2010. "Educational Federalism and the Quality Effects of Tuition Fees," CESifo Working Paper Series 3193, CESifo Group Munich.
  6. C. Katharina Spieß & Katharina Wrohlich, 2008. "Does Distance Determine Who Attends a University in Germany?," SOEPpapers on Multidisciplinary Panel Data Research 118, DIW Berlin, The German Socio-Economic Panel (SOEP).
  7. Gabrielle Demange, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo, vol. 54(2), pages 248-276, June.
  8. Tim Krieger & Thomas Lange, 2008. "Education policy and tax competition with imperfect student and labor mobility," Working Papers CIE 8, University of Paderborn, CIE Center for International Economics.
  9. Mchugh, Richard & Morgan, James N., 1984. "The determinants of interstate student migration: a place-to-place analysis," Economics of Education Review, Elsevier, vol. 3(4), pages 269-278, August.
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