IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp8623.html
   My bibliography  Save this paper

Did Tuition Fees in Germany Constrain Students' Budgets? New Evidence from a Natural Experiment

Author

Listed:
  • Thomsen, Stephan L.

    () (Leibniz University of Hannover)

  • von Haaren, Friederike

    () (NIW Hannover, Leibniz Universität Hannover)

Abstract

Less than a decade ago, several German states introduced tuition fees for university education. Despite their comparatively low level, fees were perceived by the public to increase social injustice, and have been abolished. Whereas other studies have shown no effect on enrollment, we analyze the effects on students' budgets. To identify causal effects, we exploited the natural experiment established by the introduction of fees. They did not affect students' spending behavior independently of social background, but females experienced a small negative effect. Effects on other outcomes indicate that students increased their budgets only marginally; fees did not increase social inequality.

Suggested Citation

  • Thomsen, Stephan L. & von Haaren, Friederike, 2014. "Did Tuition Fees in Germany Constrain Students' Budgets? New Evidence from a Natural Experiment," IZA Discussion Papers 8623, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8623
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp8623.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vernon Gayle, 1996. "The determinants of student loan take-up in the United Kingdom: another gaze," Applied Economics Letters, Taylor & Francis Journals, vol. 3(1), pages 25-27.
    2. Dwenger, Nadja & Storck, Johanna & Wrohlich, Katharina, 2012. "Do tuition fees affect the mobility of university applicants? Evidence from a natural experiment," Economics of Education Review, Elsevier, vol. 31(1), pages 155-167.
    3. Pietro Garibaldi & Francesco Giavazzi & Andrea Ichino & Enrico Rettore, 2012. "College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 699-711, August.
    4. Bruckmeier, Kerstin & Wigger, Berthold U., 2014. "The effects of tuition fees on transition from high school to university in Germany," Economics of Education Review, Elsevier, vol. 41(C), pages 14-23.
    5. Hübner, Malte, 2012. "Do tuition fees affect enrollment behavior? Evidence from a ‘natural experiment’ in Germany," Economics of Education Review, Elsevier, vol. 31(6), pages 949-960.
    6. Haultain, Steve & Kemp, Simon & Chernyshenko, Oleksandr S., 2010. "The structure of attitudes to student debt," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 322-330, June.
    7. Schwartz, S. & Finnie, R., 2002. "Student loans in Canada: an analysis of borrowing and repayment," Economics of Education Review, Elsevier, vol. 21(5), pages 497-512, October.
    8. Booij, Adam S. & Leuven, Edwin & Oosterbeek, Hessel, 2012. "The role of information in the take-up of student loans," Economics of Education Review, Elsevier, vol. 31(1), pages 33-44.
    9. Barr, Nicholas, 1993. "Alternative Funding Resources for Higher Education," Economic Journal, Royal Economic Society, vol. 103(418), pages 718-728, May.
    10. Berger, Mark C. & Kostal, Thomas, 2002. "Financial resources, regulation, and enrollment in US public higher education," Economics of Education Review, Elsevier, vol. 21(2), pages 101-110, April.
    11. Davies, Emma & Lea, Stephen E. G., 1995. "Student attitudes to student debt," Journal of Economic Psychology, Elsevier, vol. 16(4), pages 663-679, December.
    12. Bruce Chapman & Mathias Sinning, 2014. "Student loan reforms for German higher education: financing tuition fees," Education Economics, Taylor & Francis Journals, vol. 22(6), pages 569-588, December.
    13. Johnstone, D. Bruce, 2004. "The economics and politics of cost sharing in higher education: comparative perspectives," Economics of Education Review, Elsevier, vol. 23(4), pages 403-410, August.
    14. Cecile Hoareau & Jo Ritzen & Gabriele Marconi, 2013. "Higher education and economic innovation, a comparison of European countries," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-24, December.
    15. Barr, Nicholas, 1993. "Alternative funding resources for higher education," LSE Research Online Documents on Economics 280, London School of Economics and Political Science, LSE Library.
    16. Rupert Kawka, 2010. "Regionale Preisunterschiede in den alten und neuen Ländern," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(02), pages 5-16, 04.
    17. Timo Mitze & Claudia Burgard & Björn Alecke, 2015. "The tuition fee ‘shock’: Analysing the response of first-year students to a spatially discontinuous policy change in Germany," Papers in Regional Science, Wiley Blackwell, vol. 94(2), pages 385-419, June.
    18. Oosterbeek, Hessel & van den Broek, Anja, 2009. "An empirical analysis of borrowing behaviour of higher education students in the Netherlands," Economics of Education Review, Elsevier, vol. 28(2), pages 170-177, April.
    19. Felicia Ionescu, 2009. "The Federal Student Loan Program: Quantitative Implications for College Enrollment and Default Rates," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 205-231, January.
    20. Christopher Avery & Sarah Turner, 2012. "Student Loans: Do College Students Borrow Too Much--Or Not Enough?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 165-192, Winter.
    21. Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
    22. David Greenaway & Michelle Haynes, 2003. "Funding Higher Education in The UK: The Role of Fees and Loans," Economic Journal, Royal Economic Society, vol. 113(485), pages 150-166, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lergetporer, Philipp & Woessmann, Ludger, 2019. "The Political Economy of Higher Education Finance: How Information and Design Affect Public Preferences for Tuition," Rationality and Competition Discussion Paper Series 145, CRC TRR 190 Rationality and Competition.
    2. Didier Fouarge & Merve Nezihe Özer & Philipp Seegers, 2019. "Personality traits, migration intentions, and cultural distance," Papers in Regional Science, Wiley Blackwell, vol. 98(6), pages 2425-2454, December.
    3. Egorov, Aleksei V. (Егоров, Алексей В.) & Borzykh, Olga A. (Борзых, Ольга А.), 2018. "Asymmetric Interest Rate Pass-Through in Russia [Асимметрия Процентного Канала Денежной Трансмиссии В России]," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 92-121, February.
    4. Meyer, Tobias & Thomsen, Stephan, 2015. "New Evidence on the Effects of the Shortened School Duration in the German States - An Evaluation of Post-School Education Decisions," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112910, Verein für Socialpolitik / German Economic Association.
    5. Serguei MIKHAILITCHENKO, 2017. "Economic structure of educational process and its implications for the higher education reform," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 69-82, Spring.

    More about this item

    Keywords

    natural experiment; student spending; tuition fees; Germany;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8623. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Holger Hinte). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.