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The effect of tuition fees on university graduation

Author

Listed:
  • Marc Bachmeier
  • Jan Marcus

Abstract

This paper examines the impact of tuition fees on graduation rates among high-school leavers. We analyse the introduction of fees in several German states in 2006-07 (around EUR 1,000 annually), using administrative microdata on all university graduates and a difference-in-differences approach. The share of high-school leavers graduating fell by 1.8 percentage points, which is less than the 3.2-percentage point drop in enrolment, indicating many deterred students would not have graduated without fees. This underscores the importance of studying not only enrolment but also graduation rates, particularly in systems with high dropout rates and ``ghost students''–students enrolling primarily for non-educational benefits.

Suggested Citation

  • Marc Bachmeier & Jan Marcus, 2025. "The effect of tuition fees on university graduation," Berlin School of Economics Discussion Papers 0061, Berlin School of Economics.
    • Handle: RePEc:bdp:dpaper:0061
    DOI: 10.48462/opus4-5752
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    More about this item

    Keywords

    tuition fees; university graduation; higher education financing; ghost students;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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