Financial Student Aid and Enrollment into Higher Education: New Evidence from Germany

Viktor Steiner () and Katharina Wrohlich
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Viktor Steiner: Free University of Berlin

No 3601, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We estimate the elasticity of enrollment into higher education with respect to the amount of means tested student aid (BAfoeG) provided by the federal government using the German Socioeconomic Panel (SOEP). Potential student aid is derived on the basis of a detailed tax-benefit microsimulation model. Since potential student aid is a highly non-linear and discontinuous function of parental income, the effect of BAfoeG on students' enrollment decisions can be identified separately from parental income and other family background variables. We find a small but significant positive elasticity similar in size to those reported in previous studies for the United States and other countries.

Keywords: competing risk model; financial incentives; higher education (search for similar items in EconPapers)
JEL-codes: H24 H52 I28 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2008-07
New Economics Papers: this item is included in nep-edu and nep-lab
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Citations: View citations in EconPapers (13)

Published - revised version published in: Scandinavian Journal of Economics, 2012, 114(1), 124–147

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Related works:
Journal Article: Financial Student Aid and Enrollment in Higher Education: New Evidence from Germany (2012)
Working Paper: Financial Student Aid and Enrollment into Higher Education: New Evidence from Germany (2008)
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