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Sococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128ducation in the UKPhilip Wales (SERC)41306This work is part of the research programme of the independent UK Spatial Economics Research Centre funded by a grant from the Economic and Social Research Council (ESRC). Department for Business. Innovation & Skills (BIS) and the Welsh Assembly Government. __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128The support of the funders is acknowledged. The views expressed are those of the authors and do not represent the views of the hinders.'© p. Wales, su__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
bmitted 2013Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Education in the VKPhilip Wales*41306* SERCAbSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128rstly. it describes trends in postgraduate participation in the UK. Secondly, it introduces a hitherto unavailable dataset of postgraduate tuition fees by institution and subject: the first of its kind. Thirdly, it attempts to control for several potential forms of endogeneity Io assess the extent t __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128o which tuition fees affect demand. It adopts an instrumental variables approach to partially control for the potential endogeneity of tuition fees an__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
d includes a broad array of fixed effects to mitigate the impact of sorting into universities and endogenous residential selection. The results suggesSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128es. Tn our preferred specification a 10% increase in tuition fees reduces the probability of progression by 1.7%.JET. Classifications: C25. Ĩ2. J24, DI 2Keywords: Education, human capital, skills, consumer economics: empirical analysisPostgraduate education is a large and growing part of the higher __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128education system in the UK. In 2000/01 there were 168.235 full-time postgraduates at universities in Great Britain. By 2010/11 the number of full-time__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
students had grown to 304.320. taking the total number of postgraduates in higher education to more than 575,000 (HESA 2010). Around 10% of graduatinSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128nd policy-maker attention on first-degree students (Johnstone 2004, Chowdry Ct al. 2010. Barr 2010a. 2010b. Dearden et al. 2011). Despite the large size of the postgraduate sector and the relevance of issues such as access and the impact of tuition fees, few papers have engaged with these questions __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128beyond undergraduate level, with notable exceptions (Machin and Murphy 2010). Highlighting this research deficit, the Browne review of higher educatio__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
n funding concludes that trends in postgraduate study should ‘be monitored carefully, including after the introduction of changes to funding and studeSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128the funding arrangements for taught postgraduate courses, concluding: ‘we have seen no evidence that the absence of student support in the taught postgraduate market has had a detrimental impact on access to postgraduate higher education’ (Browne 2010. pp.55). In an earlier review of postgraduate tr __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128aining in the UK. Department for Business. Innovation and Skills (BIS) (2010) calls for research to examine whether finance presents a barrier for pot__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
ential postgraduate students, arguing that at present ‘there is little in the way of robust1 Based on Destinations of Leavers from Higher Education suSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128nd the lack of student support prevent those who would otherwise have pursued postgraduate education from doing so* (BIS 2010. pp.48).This paper seeks to address this research deficit through an examination of participation in postgraduate higher education. Using a large micro-level dataset it explo __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128res why some undergraduates choose to remain in higher education after completing their first degree and why others do not. and makes several contribu__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
tions to the literature. Firstly, this paper provides a summary of previously neglected trends in postgraduate participation in the UK. Secondly, it iSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128ge number of requests made under the Freedom of Information Act. Thirdly, it uses a micro-level model and seeks to control for several potential forms of endogeneity to assess the extent to which tuition fees affect the demand for postgraduate education in the UK.The paper makes a number of findings __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128. Firstly, postgraduate fees increased faster than inflation between 2003/04 and 2008 09. Secondly, there are significant differences in tuition fees__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
within and between institutions. Thirdly, the results suggest that higher fees reduce Student demand for postgraduate places. In my preferred specificSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher Ed __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp01285%. Finally, the results also suggest that there are significant differences in progression probabilities between students from different socio-economic groups, even after controlling for observable differences in academic attainment. The results raise questions about the relative lack of public fun __lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128ding to support research students above undergraduate level.The remainder of this paper is structured as follows. Section 1 provides a brief examinati__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_SERC discussion papers_2013_sercdp0128
on of higher education funding in the UK. Section 2 surveys existing academic3Sococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher EdSococl Ccoxoics Besecrh CentreSERC DISCUSSION PAPER 128Access All Areas?The Impact of Fees and Background on Student Demand for Postgraduate Higher EdGọi ngay
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