The demand for higher education in the Netherlands 1950-'99

This paper investigates the role of economic factors in the university enrollment decision for the post-war period in the Netherlands. We include those factors standing at the heart of the idea that education is an investment. Collecting student enrollment data for eight subject categories results in a large data set, as a cross-section dimension is added to the time-series. The econometric results suggest that students are not responsive to tuition fees, but financial support (the sum of loans and grants), the college premium on future labour market earnings, and the alternative wage are important in the enrollment decision.