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Does reducing student support affect educational choices and performance? Evidence from a Dutch reform

Author

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  • Michèle Belot
  • Erik Canton
  • Dinand Webbink
Abstract
This paper investigates the impact of student support on educational choice (university versus non-university) and student performance in higher education, using data from the Netherlands. This paper investigates the impact of student support on educational choice (university versus non-university) and student performance in higher education, using data from the Netherlands. Over the years, the generosity of this support system has been substantially reduced. This paper considers the 1996-reform, which reduced the duration of public support by one year and limited it to the nominal duration of the study program. We investigate the effects of the reform, using micro data on freshmen from two cohorts: one before the change (1995) and one after the change (1997). We find that the reform drove 2.2% of the students from university to higher vocational education. We also find that performance improved after the reform. The probability of dropping out after 5 months fell by 2%, and university students completed 5% more courses. In addition, students spent relatively more time working on the side (3.7 hours per week on average) and less time studying (1.8 hours per week on average). This means that students probably became more efficient.

Suggested Citation

  • Michèle Belot & Erik Canton & Dinand Webbink, 2004. "Does reducing student support affect educational choices and performance? Evidence from a Dutch reform," CPB Discussion Paper 35, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:35
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    References listed on IDEAS

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    1. Edwin Leuven & Hessel Oosterbeek & Bas van der Klaauw, 2010. "The Effect of Financial Rewards on Students' Achievement: Evidence from a Randomized Experiment," Journal of the European Economic Association, MIT Press, vol. 8(6), pages 1243-1265, December.
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    6. Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, vol. 93(1), pages 279-288, March.
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    Cited by:

    1. Erik Canton & A. Blom, 2004. "Do student loans improve accessibility to higher education and student performance? An impact study of the SOFES program in Mexico," CPB Discussion Paper 33, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Erik Canton & Bert Minne & Ate Nieuwenhuis & Bert Smid & Marc van der Steeg, 2005. "Human capital, R&D, and competition in macroeconomic analysis," CPB Document 91.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Erik Canton & A. Blom, 2004. "Do student loans improve accessibility to higher education and student performance? An impact study of the SOFES program in Mexico," CPB Discussion Paper 33.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Booij, Adam S. & Leuven, Edwin & Oosterbeek, Hessel, 2012. "The role of information in the take-up of student loans," Economics of Education Review, Elsevier, vol. 31(1), pages 33-44.
    5. Henk Don & Johan Verbruggen, 2006. "Models and methods for economic policy; 60 years of evolution at CPB," CPB Discussion Paper 55.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Berger, Johannes & Strohner, Ludwig, 2020. "Documentation of the PUblic Policy Model for Austria and other European countries (PUMA)," Research Papers 11, EcoAustria – Institute for Economic Research.
    7. Canton, Erik & de Jong, Frank, 2005. "The demand for higher education in The Netherlands, 1950-1999," Economics of Education Review, Elsevier, vol. 24(6), pages 651-663, December.

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    More about this item

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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