Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18296
Authors: 
Baumgartner, Hans J.
Steiner, Viktor
Year of Publication: 
2004
Series/Report no.: 
DIW Discussion Papers 444
Abstract: 
We evaluate the effect of the federal students? financial assistance scheme (BAfoeG) on enrolment rates into higher education by exploiting the exogenous variation introduced through a discrete shift in the repayment regulations. Supported students had to repay the full loan until 1990. Thereafter, 50 percent of the student aid has been offered as a non-repayable grant. Our results from simple difference-in-difference estimates suggest that student aid is ineffective in raising enrolment rates. Our findings may have important implications for the current debate on the reform of financing higher education in Germany and elsewhere.
Subjects: 
educational decision
educational finance
higher education
difference-in-difference
discrete-choice
JEL: 
J24
I22
I28
Document Type: 
Working Paper

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