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ERIC Number: ED529853
Record Type: Non-Journal
Publication Date: 2011-Jul
Pages: 31
Abstractor: ERIC
Reference Count: 30
ISBN: N/A
ISSN: N/A
The Impact of Tuition Fees and Support on University Participation in the UK. CEE DP 126
Dearden, Lorraine; Fitzsimons, Emla; Wyness, Gill
Centre for the Economics of Education (NJ1)
Understanding how policy can affect university education is important for understanding how governments can promote human capital accumulation. This paper exploits historic changes to university funding policies in the UK to estimate the impact of tuition fees and maintenance grants on university participation. Previous work on this, which largely relates to the US, considers either the effect of fees or the effect of support, but not both in the same setting; moreover it considers specific sub-samples of individuals. In this paper on the other hand, the authors benchmark the effects of both grants and fees, and furthermore, they do this on a representative sample of individuals. Using a pseudo panel data set constructed from 16 years of data on first-year university participation, their results suggest an important role for tuition fees and grants in university participation decisions: they find robust evidence that a 1,000 British pounds increase in tuition fees reduces university participation by 3.9 percentage points, while a 1,000 British pounds increase in maintenance grants increases participation by 2.6 percentage points. These figures equate to an elasticity of -0.14 for fees and 0.18 for grants. These results are in line with those estimated in the US in a number of studies, such as Kane (1995), Dynarski (2003) and Hemelt and Marcotte (2008). Probability of university participation at age 18-19 is appended. (Contains 8 tables, 5 figures and 34 footnotes.)
Centre for the Economics of Education. London School of Economics and Political Science, Houghton Street, London, WC2A 2AE, UK. Tel: +44-20-7955-7673; Fax: +44-20-7955-7595; e-mail: cee@lse.ac.uk; Web site: http://cee.lse.ac.uk
Publication Type: Reports - Research
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: Department for Education and Skills
Authoring Institution: London School of Economics & Political Science, Centre for the Economics of Education
Identifiers - Location: United Kingdom