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IZA Discussion Paper No. 8623
November 2014
Did Tuition Fees in Germany Constrain Students' Budgets? New Evidence from a Natural Experiment

revised version published in: IZA Journal or European Labor Studies, 2016, 5:6

Less than a decade ago, several German states introduced tuition fees for university education. Despite their comparatively low level, fees were perceived by the public to increase social injustice, and have been abolished. Whereas other studies have shown no effect on enrollment, we analyze the effects on students' budgets. To identify causal effects, we exploited the natural experiment established by the introduction of fees. They did not affect students' spending behavior independently of social background, but females experienced a small negative effect. Effects on other outcomes indicate that students increased their budgets only marginally; fees did not increase social inequality.

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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