Does More Generous Student Aid Increase Enrolment Rates into Higher Education? Evaluating the German Student Aid Reform of 2001

26 Pages Posted: 24 Mar 2006

See all articles by Hans J. Baumgartner

Hans J. Baumgartner

DIW Berlin, German Institute for Economic Research

Viktor Steiner

Zentrum Fuer Europaeische Wirtschaftsforschung (ZEW) - Center for European Economic Research; IZA Institute of Labor Economics

Date Written: March 2006

Abstract

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.

Keywords: educational transitions, educational finance, natural experiment

JEL Classification: H31, I28, I22, J24

Suggested Citation

Baumgartner, Hans J. and Steiner, Viktor, Does More Generous Student Aid Increase Enrolment Rates into Higher Education? Evaluating the German Student Aid Reform of 2001 (March 2006). IZA Discussion Paper No. 2034, Available at SSRN: https://ssrn.com/abstract=892831

Hans J. Baumgartner

DIW Berlin, German Institute for Economic Research ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

Viktor Steiner (Contact Author)

Zentrum Fuer Europaeische Wirtschaftsforschung (ZEW) - Center for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
214
Abstract Views
1,138
rank
157,463
PlumX Metrics