Arbeitspapier

Financial student aid and enrollment into higher education: new evidence from Germany

We estimate the elasticity of enrollment into higher education with respect to the amount of means tested student aid (BAfoeG) provided by the federal government using the German Socioeconomic Panel (SOEP). Potential student aid is derived on the basis of a detailed tax-benefit microsimulation model. Since potential student aid is a highly non-linear and discontinuous function of parental income, the effect of BAfoeG on students' enrollment decisions can be identified separately from parental income and other family background variables. We find a small but significant positive elasticity similar in size to those reported in previous studies for the United States and other countries.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 3601

Classification
Wirtschaft
National Government Expenditures and Education
Subject
Higher education
financial incentives
competing risk model
Studienfinanzierung
Studium
Bildungsverhalten
Ökonomischer Anreiz
Deutschland

Event
Geistige Schöpfung
(who)
Steiner, Viktor
Wrohlich, Katharina
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2008

Handle
URN
urn:nbn:de:101:1-20080723122
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Steiner, Viktor
  • Wrohlich, Katharina
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2008

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