The Effects of Tuition Fees on Study Duration and Completion

This study estimates the effect of tuition fees for higher education on study duration and graduation. In 2006/2007, fees for university studies were introduced by a large number of German universities and also applied to students already enrolled at the time. This unusual feature allows estimating causal effects of fees at the intensive margin, holding constant composition. Based on administrative data on all students in Germany, we find that even modest fees significantly shorten the duration of studies. This is driven by earlier and more graduation of students due to higher study effort and more time invested.