Overview

Abstract (English)

In this thesis, I examine the impacts of changes in the cost of a university education on university enrollment rates and on students’ part-time work. Chapter 2 asks how increases in university tuition fees affect the demand for places. Unlike previous papers, I take seriously the possibility that rising tuition fees might be the result of rising demand. Using an instrumental variables strategy, I show there is reason to believe that this endogeneity problem has led to an upward bias in previous Canadian estimates of the demand response to fee increases. When this is accounted for, rising tuition fees do depress the demand for a university education. The effect differs depending on family background. In Chapter 3, I turn to an examination of the causes of the recent increase in the proportion of university students who combine work with their studies. I find that a large part can be explained by increasing costs of education. This confirms the potential importance of the availability of work during school as an avenue for overcoming credit constraints. The effect of fees cannot be considered independently of existing financial aid structures. In Chapter 4, therefore, I tease out the effect of student loan programs on enrollments and work by students. There are very few studies of the role of these programs because participation is usually highly correlated with income and other family characteristics that affect student decisions. Here, I use differences in the timing of policy changes between Quebec and the rest of Canada to examine the effect of increasing limits on student borrowing. I find that large increases in student loan maxima in the early 1990s were associated with a substantial rise in enrollment rates, especially among students from relatively disadvantaged backgrounds and those living away from home. These are exactly the groups that are most likely to receive student loans. Together, these papers provide a basis for understanding how Canada’s system of university funding, including both payments to universities and directly to students, affect the demand for university places overall, as well as among specific sub-groups of the population.

Abstract (French)

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