The willingness to pay for higher education: does the type of fee matter?

Abstract

University level data are used to determine whether different types of fees affect university enrolment of first-year students differently at public universities in Germany. We find a significantly negative effect of the recently introduced tuition fees on enrolment. In contrast, the effect of administrative fees is insignificant. This is striking as both types of fees serve similar purposes.

Keywords:

• tuition fees
• higher education
• university enrolment
• administrative fees

JEL Classification:

• I20
• I22

Acknowledgements

This work is supported by the German Federal Ministry of Education and Research (BMBF) (grant no. 01PW11015). Any opinions expressed here are those of the authors.

Notes

¹ Other fees at German universities include, for example, payments for the student union or a six-month student transit pass.

² Marcucci and Johnstone (2007) differentiate between tuition fees and normal fees in that tuition fees should cover some fraction of the general costs of education, while normal fees cover the costs of noneducation goods and services. In the German case, such a clear cut distinction cannot be drawn.