Public expenditures on higher education and their impact on enrolment patterns

The purpose of this paper is to estimate the declines in enrolment that can be expected if government-provided scholarship aid is reduced and basic student charges are increased. A model of the scholarship aid process is interacted with a traditional human capital approach to enrolment behaviour. These models are then estimated using a large microdata set of young persons, and the fitted values utilized to simulate enrolment probabilities for white and nonwhite males and females given alternative fiscal scenarios.