Tuition fees and academic (in)activity
We examine the effects of abolishing moderate tuition fees (EUR 500 per semester) in Germany on higher education outcomes. Using administrative panel data from a state university, we find that tuition-free students reduced their academic effort: active students postponed graduation, while low-activity students became more inactive by withdrawing from registered exams. Leveraging detailed student-level data, we analyze the ghost student phenomenon, in which enrolled students show no academic activity. This pattern emerges from strong enrollment incentives combined with a lack of performance standards. After the reform, the share of ghost students increased, reducing the efficiency of public spending on higher education.
Berens, J., K. Schneider and L. Henao (2025), Tuition fees and academic (in)activity. Labour Economics, 97, 102809