Participation and Schooling in a Public System of Higher Education

45 Pages Posted: 2 Aug 2006

See all articles by Stijn Kelchtermans

Stijn Kelchtermans

KU Leuven - Department of Management, Strategy & Innovation; KU Leuven

Frank Verboven

Catholic University of Leuven (KUL) - Department of Applied Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2006

Abstract

We analyze the determinants of participation (whether to study) and schooling (where and what to study) in a public system of higher education, based on a unique dataset of all eligible high school pupils in an essentially closed region (Flanders). We find that pupils perceive the available institutions and programs as close substitutes, implying an ambiguous role for travel costs: they hardly affect the participation decisions, but have a strong impact on the schooling decisions. In addition, high school background plays an important role in both the participation and schooling decisions. To illustrate how our empirical results can inform the debate on reforming public systems, we assess the effects of tuition fee increases. Uniform cost-based tuition fee increases achieve most of the welfare gains; the additional gains from fee differentiation are relatively unimportant. These welfare gains are quite large if one makes conservative assumptions on the social cost of public funds, and there is a substantial redistribution from students to outsiders.

Keywords: Higher education, participation, policy reform, schooling

JEL Classification: I2, I23

Suggested Citation

Kelchtermans, Stijn and Verboven, Frank, Participation and Schooling in a Public System of Higher Education (May 2006). CEPR Discussion Paper No. 5690, Available at SSRN: https://ssrn.com/abstract=921862

Stijn Kelchtermans

KU Leuven - Department of Management, Strategy & Innovation ( email )

Warmoesberg 26
Brussels, 1000
Belgium

HOME PAGE: http://https://feb.kuleuven.be/Stijn.Kelchtermans/

KU Leuven ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

HOME PAGE: http://feb.kuleuven.be/eng/fetew/medewerker/userpage.aspx?PID=759

Frank Verboven (Contact Author)

Catholic University of Leuven (KUL) - Department of Applied Economics ( email )

Leuven, B-3000
Belgium
+32 1 632 6944 (Phone)
+32 1 632 6732 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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