University Tuition Fees and Student Outcomes: Literature Review from a Swiss Perspective

Against the background of a proposed increase in tuition fees in Switzerland, we review the empirical literature on the implications of such funding changes for student outcomes. The available evidence suggests that the price elasticity of overall demand for higher education is close to zero. Grants targeted at school leavers from lower-income families, however, have been shown to boost participation and educational outcomes of economically disadvantaged students. As a consequence, fee rises that are combined with corresponding increases in means-tested financial support have been found to leave both overall enrolment and its distribution across socio-economic groups largely unaffected. There is some evidence that, for enrolled students, higher fees are associated with more effort, faster completion, lower consumption expenditure, and a small shift towards subjects with better earnings prospects.