The Effect of Tuition Fees on Student Enrollment and Location Choice – Interregional Migration, Border Effects and Gender Differences
This paper investigates the effects of tuition fees on the university enrollment and location decision of high school graduates in Germany. After a Federal Constitutional Court decision in 2005, 7 out of 16 German federal states introduced tuition fees for higher education. In the empirical analysis, we use the variation over time and across regions in this institutional change in order to isolate the causal effect of tuition fees on student enrollment and migration. Controlling for a range of regional- and university-specific effects, our results from Difference-in-Differences estimations show that there is generally no effect of tuition fees on internal enrollment rates. However, we find a redirecting effect on first-year students‘ migratory behavior as indicated by a signicant drop in the gross in-migration rates in fee-charging states. Further, our results point at a stronger migration response of male students, which, however, can mainly be attributed to a “border effect”. That is, interregional migration flows of male students are redirected from fee-charging universities to those universities that are geographically close by while being located in a non-charging neighboring state. Controlling for these border effects, the relocating trend in long-distance migration of university freshmen does not show any particular gender differences.
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- Nadja Dwenger & Johanna Storck & Katharina Wrohlich, 2009.
"Do Tuition Fees Affect the Mobility of University Applicants?: Evidence from a Natural Experiment,"
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- Burgard, Claudia & Grave, Barbara S., 2013. "Does it Pay Off to Incentivize Universities? – Performance Funding in the German Higher Education System," Ruhr Economic Papers 457, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Gary S. Becker & William H. J. Hubbard & Kevin M. Murphy, 2010.
"Explaining the Worldwide Boom in Higher Education of Women,"
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University of Chicago Press, vol. 4(3), pages 203 - 241.
- Gary S. Becker & William Hubbard & Kevin Murphy, 2010. "Explaining the Worldwide Boom in Higher Education of Women," Working Papers 2010-009, Becker Friedman Institute for Research In Economics.
- James P. LeSage & R. Kelley Pace, 2008. "Spatial Econometric Modeling Of Origin-Destination Flows," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 941-967.
- Bjoern Alecke & Timo Mitze, 2012.
"Studiengebühren und das Wanderungsverhalten von Studienanfängern: Eine panel-ökonometrische Wirkungsanalyse,"
6-2012, GEFRA - Gesellschaft fuer Finanz- und Regionalanalysen.
- Björn Alecke & Timo Mitze, 2012. "Studiengebühren und das Wanderungsverhalten von Studienanfängern: eine panel-ökonometrische Wirkungsanalyse," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 13(4), pages 357-386, November.
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