The Effects of the Introduction of Tuition on College ...
[Pages:148]The Effects of the Introduction of Tuition on College Enrollment in Germany: Results from a Natural Experiment
With Special Reference to Students from Low Parental Education Backgrounds by
Anna J. Kroth
A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy (Higher Education) at the University of Michigan 2015
Doctoral Committee: Professor Stephen L. DesJardins, Co-Chair Professor Brian P. McCall, Co-Chair Associate Professor Kai S. Cortina Professor Hans Anand Pant, Humboldt Universit?t zu Berlin, Germany
?Anna Kroth All rights reserved
2015
To my parents ii
ACKNOWLEDGEMENTS
I would like to express my special appreciation and thanks to my dissertation committee, Stephen DesJardins, Brian McCall, Kai Cortina, and Hans Anand Pant for invaluable advising and support. Your advice on both research as well as on my career have been priceless. I would like to thank the faculty and staff of the School of Education at the University of Michigan. All of you have supported me in countless ways during my graduate studies. I also would like to thank Susan Dynarski, Brad Hershbein , Kai Maaz and Brady West for very helpful feedback and the DZHW, in particular Christoph Heine and Heiko Quast for letting me use their data. I am also greatly indebted to my employers at the Institute for Educational Quality Improvement (IQB) at Humboldt University Berlin and the Berlin Social Science Center (WZB) for their support while I was writing my dissertation. Furthermore I would like to thank Ben Beckett, Roisin Cronin, Teresa Go, and Christa Vogelius for irreplaceable editing help. The financial support of the Grant Program for Empirical Educational Research funded by the German Ministry for Education and Research and the College for Interdisciplinary Educational Research is also gratefully acknowledged. A special thanks to my friends and family who supported me in writing, and incented me to strive towards my goal. Finally, I would like express appreciation to my parents. Words cannot express how grateful I am to them for their encouragement, love and support. This dissertation is dedicated to them.
iii
TABLE OF CONTENTS
Dedication
ii
Acknowledgements
iii
List of Tables
vii
List of Figures
viii
List of Appendices
ix
Abstract
x
Chapter 1
Introduction
1
Prior research
2
Relevance of research on tuition effects in the European context
3
Theoretical perspectives on the enrollment effects of tuition
5
Research questions
7
Methodology
7
Chapter 2
Higher Education, College Financing and Financial Aid in Germany
11
The System of Higher Education in Germany
11
Structure
11
Enrollment rates and access rules
12
Social disparities in access to higher education
13
The vocational education system
16
College Costs and Financial Aid in Germany
17
College costs
17
Financial aid
17
Student loans.
19
iv
Financial sources and unmet financial need
20
Chapter 3
Theoretical Perspectives on Enrollment Effects of Tuition
23
Rational Choice Theories
23
Human capital theory
24
Sociological rational choice theory
25
Shared assumptions of human capital and sociological rational choice theory 26
Hypotheses of rational choice theories about enrollment effects of tuition
29
Norm-based Theories
40
Behavioral Economics
41
Conclusions about Theoretical Perspectives on Tuition Effects
45
Chapter 4
The Enrollment Effects of Tuition in the US, England, the Netherlands and Germany: A
Review of the Literature
48
Enrollment effects of tuition in the US
48
Enrollment effects of tuition in the UK
49
Enrollment effects of tuition in the Netherlands
51
Enrollment effects of tuition in Germany
51
Effects of Concerns about College Cost on Enrollment in Germany
54
Effects of Financial Aid in Germany
55
Effects of Student Loans in Germany
56
Chapter 5
Tuition Policy in Germany
59
Chapter 6
Data
66
Chapter 7
Empirical Methodology
71
v
Chapter 8
Results
76
Difference-in-differences analysis - Overall results
76
Difference-in-Difference-in-Differences Analysis ? Effects on Students from Low
Parental Education Backgrounds
83
Analysis of Longitudinal Data on the Graduating Cohort of 2005
95
Chapter 9
Discussion
99
Key Aspects of this Dissertation
99
Relevance of Research on Tuition Effects.
100
Findings of this dissertation
101
Robustness of findings and limitations
102
Contribution to research
104
Conclusions for Theoretical Perspectives on the Effects of Tuition on Enrollment 105
Implications for Tuition and Financial Aid Policies in Germany Waiving tuition for students from low-SES backgrounds Broadening financial aid eligibility and amounts Providing timely financial aid information and counseling Simplifying financial aid applications
10510 110 111 111 112
Questions for Future Research about College Costs and Financial Aid in Germany 113
Effects of tuition on college persistence and completion
113
Effects of financial aid on college enrollment, persistence and completion
113
Financial aid information
114
Concluding Remarks
113
Appendices
118
References
125
vi
LIST OF TABLES
Table 1 Average financial resources per month by source and socioeconomic
background in 2009
21
Table 2 Tuition policies: Introduction, abolition, and amount
60
Table 3 Descriptive statistics: Abitur graduates 1999 to 2008
67
Table 4 The effect of tuition on college enrollment ? overall results
78
Table 5 The effect of tuition by post-year and on postponing and ruling out
college enrollment
81
Table 6 The effect of tuition on college enrollment by parental education
85
Table 7 Predicted enrollment probabilities by parental education and state group
87
Table 8 The effect of tuition by post-year, state, on postponing enrollment and
robustness test
91
Table 9 Placebo tests, effects of implementing tuition and on postponing enrollment 92
Table 10 The effect of tuition on college enrollment among students who
had intended on enrolling
97
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