Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes

Ghazala Azmat and Simion Ştefania ()
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Simion Ştefania: University of Bristol and CEP (LSE), Bristol, UK

The B.E. Journal of Economic Analysis & Policy, 2021, vol. 21, issue 1, 175-239

Abstract: Over the last two decades, undergraduate university education in England moved from being state-funded and free for students, to costing all students substantial amounts in tuition fees. In this paper, using detailed administrative longitudinal microdata that follow all students attending state schools in England (approximately 95% of student population), we causally show that, despite the substantial reforms, enrollment fell only by 0.5 percentage points, where the effect is largely borne by those in wealthier groups, reducing the enrolment gap across socio-economic groups. Since tuition fees were introduced in conjunction with the government offering generous means-tested maintenance (cash) grants, as well as loans, our results highlight the importance of reducing financing constraints. Beyond enrollment, we find that the reforms have limited impact on students’ higher education choices, such as relocation decisions, university choice, and field of study. Finally, by tracking the students after graduation, we show similarly small effects on labor market outcomes.

Keywords: higher education; inequality; tuition fees; means-tested support; career outcomes (search for similar items in EconPapers)
JEL-codes: I22 I23 I29 J30 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Working Paper: Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes (2021)
Working Paper: Charging for Higher Education: Estimating the Impact on Inequality and Student Outcomes (2021)
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DOI: 10.1515/bejeap-2020-0099

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