The Land of the Fee: The Effect of Baden-Württemberg's Tuition Fee on International Student Outcomes

Abstract

Education has become a highly international export good with increasing numbers of students learning abroad. Yet, little is known about the way international students migrate and how policies influence their decision. This article evaluates the policy in one German state to charge tuition from international students since 2017, while education remains free in all other states. For my analysis, I collect and combine publicly available records for institutions of higher education in Germany since 1998. Using difference-in-differences, I find a significant decrease of about 2 percentage points in international enrollment in the treated state after the policy change. Africa and Asia are the most affected continents of origin. In contrast to state government motivations, I find no evidence for a short-term decrease in exam failure rates.

Andreas Vortisch

Postdoctoral researcher

My research focuses on the economics of immigration such as policy analyses and determinants of integration and assimilation.