The Effect of University Fees on Applications, Attendance and Course Choice: Evidence from a Natural Experiment in the UK

28 Pages Posted: 8 May 2020

See all articles by Filipa Sá

Filipa Sá

King's College London; IZA Institute of Labor Economics

Date Written: July 2019

Abstract

Over the past two decades, large changes have been introduced to the level of university fees in the UK, with significant variation across countries. This paper exploits this variation to examine the effect of fees on university applications, attendance and course choice. It finds that applications decrease in response to higher fees with an elasticity of demand of about −0.4. Attendance also decreases. The reduction in applications and attendance is larger for courses with lower salaries and employment rates after graduation, for non‐STEM subjects, and for less selective universities.

Suggested Citation

Sa, Filipa G., The Effect of University Fees on Applications, Attendance and Course Choice: Evidence from a Natural Experiment in the UK (July 2019). Economica, Vol. 86, Issue 343, pp. 607-634, 2019, Available at SSRN: https://ssrn.com/abstract=3595565 or http://dx.doi.org/10.1111/ecca.12278

Filipa G. Sa (Contact Author)

King's College London ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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