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

Discussion Papers 563, 23 S.

Hans J. Baumgartner, Viktor Steiner

2006. Mar.

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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.

Topics: Education



JEL-Classification: H31;I28;I22;J24
Keywords: Educational transitions, educational finance, natural experiment and difference-indifference estimation
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/18456

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