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University Tuition Fees and High School Students’ Educational Intentions

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  • Michael Bahrs
  • Thomas Siedler

Abstract

This paper studies whether higher education tuition fees influence the intention to acquire a university degree among high school students and, if so, whether the effect on individuals from low-income households is particularly strong. We analyze the introduction and subsequent elimination of university tuition fees in Germany across states and over time in a difference-in-differences setting. Using data from the Youth Questionnaire of the German Socio-Economic Panel (SOEP), we find a large negative effect of tuition fees on the intention of 17-years-olds to acquire a higher educational degree, with a decrease of around eight percentage points (ten percent). Individuals from low-income households mainly drive the results. This study documents that the introduction of relatively low university tuition fees of 1,000 euros per academic year can considerably lower young people’s educational intentions and choices.

Suggested Citation

  • Michael Bahrs & Thomas Siedler, 2018. "University Tuition Fees and High School Students’ Educational Intentions," SOEPpapers on Multidisciplinary Panel Data Research 1008, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp1008
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    Cited by:

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    2. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).
    3. George Abuchi Agwu & Oussama Ben Atta, 2021. "University proximity at teenage years and educational attainment," Working Papers hal-03492963, HAL.
    4. de Gendre, Alexandra & Kabátek, Jan, 2021. "From Subsidies to Loans: The Effects of a National Student Finance Reform on the Choices of Secondary School Students," IZA Discussion Papers 14686, Institute of Labor Economics (IZA).
    5. Oussama Ben Atta, 2022. "University proximity at teenage years and educational attainment," French Stata Users' Group Meetings 2022 02, Stata Users Group.

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    More about this item

    Keywords

    tuition fees; educational inequality; difference-in-differences;
    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
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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