EconPapers    
Economics at your fingertips  
 

Higher education funding in Germany: A distributional lifetime perspective

Dominik Hügle

No 2021/1, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: This paper analyzes higher education funding in Germany from a distributional perspective. For this, I first compare the quantitative importance of different funding instruments, from free tuition to subsidized health insurance for students. I show that free tuition is, by far, the most important instrument. Then, I take a lifetime perspective and assess how individuals of different expected lifetime incomes benefit from higher education funding. I distinguish between different fields of study as there are large differences in both the expected lifetime earnings of graduating from a specific field and the social cost of tuition associated with each field. Finally, I focus exclusively on the instrument of subsidized tuition and simulate the introduction of different tuition fee schemes with income-contingent loans. While the distributional effects would be sizable in absolute terms, I estimate that they would cause few individuals to change their educational decisions.

Keywords: Higher education; Education finance; Dynamic microsimulation (search for similar items in EconPapers)
JEL-codes: C53 I22 I23 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-edu and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/228538/1/1744316163.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:fubsbe:20211

Access Statistics for this paper

More papers in Discussion Papers from Free University Berlin, School of Business & Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2021-06-10
Handle: RePEc:zbw:fubsbe:20211