Working Paper: NBER ID: w23888
Authors: Richard Murphy; Judith Scott-Clayton; Gillian Wyness
Abstract: Despite increasing financial pressures on higher education systems throughout the world, many governments remain resolutely opposed to the introduction of tuition fees, and some countries and states where tuition fees have been long established are now reconsidering free higher education. This paper examines the consequences of charging tuition fees on university quality, enrolments, and equity. To do so, we study the English higher education system which has, in just two decades, moved from a free college system to one in which tuition fees are among the highest in the world. Our findings suggest that England’s shift has resulted in increased funding per head, rising enrolments, and a narrowing of the participation gap between advantaged and disadvantaged students. In contrast to other systems with high tuition fees, the English system is distinct in that its income-contingent loan system keeps university free at the point of entry, and provides students with comparatively generous assistance for living expenses. We conclude that tuition fees, at least in the English case supported their goals of increasing quality, quantity, and equity in higher education.
Keywords: higher education; tuition fees; enrolment; equity
JEL Codes: I22; I23; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| tuition fee reforms (I22) | increased funding per student (I22) |
| tuition fee reforms (I22) | rise in enrolments (I23) |
| tuition fee reforms (I22) | stabilization of participation gap (I24) |
| increase in enrolments for low-income families (I24) | participation gap stabilization (E63) |
| decrease in average entry tariff scores (F19) | widening access to lower-attaining students (I24) |
| tuition fee reforms (I22) | increased quality, quantity, and equity in higher education (I24) |