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The impact of cost on the choice of university: evidence from Ontario

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  • Martin D. Dooley
  • A. Abigail Payne
  • A. Leslie Robb

Abstract

. This paper provides the first Canadian study of the link between cost to the student and the choice of university. Over the past two decades, there has been a substantial increase in the differences among Ontario universities in ‘net cost’ defined as tuition and fees minus the expected value to an academically strong student of a guaranteed merit scholarship. Our estimates generally indicate no relationship between net cost and the overall share of strong applicants that a university is able to attract. An increase in net cost is associated with an increase in the ratio of strong students from high‐income neighbourhoods to strong students from middle‐income and low‐income neighbourhoods in Arts and Science programs but not in Commerce and Engineering. Finally, more advantaged students are more likely to attend university, but merit aid is not of disproportionate benefit to those from more economically advantaged backgrounds, given registration. JEL classification: Health Education and Welfare Impact du coût sur le choix de l’université: résultats pour l’Ontario. Ce texte présente la première étude canadienne sur le lien entre le coût pour l’étudiant et le choix d’une université. Au cours des dernières décennies, il y a eu accroissement substantiel dans les différentiels de `coûts nets' pour les universités de l’Ontario. Par coûts net, on entend les frais de scolarité et autres frais afférents moins la valeur anticipée pour un étudiant académiquement fort d’une bourse au mérite. Nos évaluations montrent qu’en général il n’y a pas de relation entre le `coût net' et la portion des bons candidats qu’une université est capable d’attirer. Un accroissement du `coût net`est associéà un accroissement du ratio des bons étudiants en provenance de quartiers à hauts revenus par rapport aux bons .étudiants en provenance de quartiers à revenus moyens ou faibles pour les programmes en Arts et en Science. Ce n’est pas le cas pour les programmes en Commerce ou en Génie. Enfin, les étudiants plus avantagés économiquement sont davantage susceptibles d’aller à l’université, mais les bourses au mérite ne bénéficient pas de manière disproportionnée à ceux qui proviennent de milieux plus favorisés, si l’on s’en tient aux étudiants qui s’inscrivent.

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  • Martin D. Dooley & A. Abigail Payne & A. Leslie Robb, 2012. "The impact of cost on the choice of university: evidence from Ontario," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(2), pages 755-783, May.
    • Handle: RePEc:wly:canjec:v:45:y:2012:i:2:p:755-783
    DOI: 10.1111/j.1540-5982.2012.01710.x
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    References listed on IDEAS

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    1. Charles T. Clotfelter, 1996. "Buying the Best: Cost Escalation in Elite Higher Education," NBER Books, National Bureau of Economic Research, Inc, number clot96-1.
    2. Michael B. Coelli, 2009. "Tuition fees and equality of university enrolment," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 1072-1099, August.
    3. Frenette, Marc, 2005. "The Impact of Tuition Fees on University Access: Evidence from a Large-scale Price Deregulation in Professional Programs," Analytical Studies Branch Research Paper Series 2005263e, Statistics Canada, Analytical Studies Branch.
    4. Martin D. Dooley & A. Abigail Payne & A. Leslie Robb, 2012. "Persistence and Academic Success in University," Canadian Public Policy, University of Toronto Press, vol. 38(3), pages 315-339, September.
    5. J. P. Raines & Charles G. Leathers, 2003. "The Economic Institutions of Higher Education," Books, Edward Elgar Publishing, number 2721.
    6. Gordon C. Winston, 1999. "Subsidies, Hierarchy and Peers: The Awkward Economics of Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 13-36, Winter.
    7. Mueller, Richard E. & Rockerbie, Duane, 2005. "Determining demand for university education in Ontario by type of student," Economics of Education Review, Elsevier, vol. 24(4), pages 469-483, August.
    8. Frenette, Marc, 2005. "Summary Of: The Impact of Tuition Fees on University Access: Evidence from a Large-scale Price Deregulation in Professional Programs," Analytical Studies Branch Research Paper Series 2005264e, Statistics Canada, Analytical Studies Branch.
    9. Qi Kong & Michael R. Veall, 2005. "Does the Maclean's Ranking Matter?," Canadian Public Policy, University of Toronto Press, vol. 31(3), pages 231-242, September.
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    1. Watson, Barry & Kong, Nancy & Phipps, Shelley, 2022. "Dreaming of a Brighter Future? The Impact of Economic Vulnerability on University Aspirations," IZA Discussion Papers 15539, Institute of Labor Economics (IZA).

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