University Tuition Fees and High School Students’ Educational Intentions

Michael Bahrs and Thomas Siedler

No 1008, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

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.

Keywords: tuition fees; educational inequality; difference-in-differences (search for similar items in EconPapers)
JEL-codes: I22 I23 I24 (search for similar items in EconPapers)
Pages: 38 p.
Date: 2018
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https://www.diw.de/documents/publikationen/73/diw_01.c.612238.de/diw_sp1008.pdf (application/pdf)

Related works:
Journal Article: University Tuition Fees and High School Students’ Educational Intentions (2019)
Working Paper: University Tuition Fees and High School Students' Educational Intentions (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp1008

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