Does More Generous Student Aid Increase Enrolment Rates into Higher Education?: Evaluating the German Student Aid Reform of 2001

Hans Baumgartner and Viktor Steiner

No 563, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Students from low-income families are eligible to student aid under the federal students' financial assistance scheme (BAfoeG) in Germany. We evaluate the effectiveness of a recent reform of student aid that substantially increased the amount received by eligible students to raise enrolment rates into tertiary education. We view this reform as a 'natural experiment' and apply the difference-in-difference methodology using a discrete-time hazard rate model to estimate the causal effect on enrolment rates into higher education. We find that the reform had a small positive but statistically insignificant effect on enrolment rates.

Keywords: Educational transitions; educational finance; natural experiment and difference-indifference estimation (search for similar items in EconPapers)
JEL-codes: H31 I22 I28 J24 (search for similar items in EconPapers)
Pages: 23 p.
Date: 2006
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (38)

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Working Paper: Does More Generous Student Aid Increase Enrolment Rates into Higher Education? Evaluating the German Student Aid Reform of 2001 (2006)
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