Does More Generous Student Aid Increase Enrolment Rates into Higher Education? Evaluating the German Student Aid Reform of 2001
Hans J. Baumgartner
DIW Berlin, German Institute for Economic Research
Zentrum Fuer Europaeische Wirtschaftsforschung (ZEW) - Center for European Economic Research; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 2034
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.
Number of Pages in PDF File: 26
Keywords: educational transitions, educational finance, natural experiment
JEL Classification: H31, I28, I22, J24working papers series
Date posted: March 24, 2006
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