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How tuition fees affected student enrollment at higher education institutions: the aftermath of a German quasi-experiment

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  • Ralf Minor

    (Friedrich-Schiller-University Jena)

Abstract

This study examines the impact of the charging of tuition fees between 2006 and 2014 in several German federal states on the number of first-year student enrollments. Since Germany is known for a tuition-free education policy at public institutions, the fundamental question arises of whether, and if so, to what extent, the temporary tuitions influenced the number of first-year-student enrollments. In this regard, Becker’s human capital theory suggests that rising fees should be associated with declining enrollment rates. The analyses to test the hypothesis are based on a longitudinal administrative panel data set for 206 universities and universities of applied sciences from 2003 to 2018; this means there are 3296 observations before, during, and after the tuition treatment. While no previous study has covered the full period of the policy or undertook more aggregate-level analyses, this study applies an analytical research design that uses several panel-data models and robustness checks to examine causal relations based on a quasi-experimental setting. The results of Fixed effects regressions confirm the hypothesized negative impact and even reveal a persistent negative effect of the treatment. The comparison of higher education institutions with and without tuition fees shows that the former institutions lost approximately between 3.8 and 7 percent of their first-year student enrollments on average.

Suggested Citation

  • Ralf Minor, 2023. "How tuition fees affected student enrollment at higher education institutions: the aftermath of a German quasi-experiment," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-19, December.
    • Handle: RePEc:spr:jlabrs:v:57:y:2023:i:1:d:10.1186_s12651-023-00354-7
    DOI: 10.1186/s12651-023-00354-7
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    More about this item

    Keywords

    Tuition fees; Policy evaluation; Quasi-experiment; Enrollment; Panel data analysis;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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