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

Executive Summary

The Swiss government proposes to increase university tuition fees. How will this affect students?

The Swiss federal government is considering a significant increase in university tuition fees. The stated aim is to shift a greater share of higher education costs to “users”, away from taxpayers. Under this proposal, fees for Swiss students would double, while international students would face a fourfold increase. This measure is expected to generate up to CHF 198 million in budgetary savings by 2030, or some 0.2% of federal expenditure. The proposal has raised concerns about the potential impact on student enrolment and equality of access to higher education.

Overall enrolment at public universities is largely insensitive to fee levels

A comprehensive review of the empirical literature suggests that the price elasticity of demand for places at public universities is close to zero. However, there is some heterogeneity across demographic groups:

• Low-income students: This population can be expected to be more price sensitive, but targeted financial aid has proven to be an effective tool for mitigating the impact of higher fees on disadvantaged students.
• High-income students: This group has been shown in some contexts to be more likely to consider alternative education options when fees are raised, including studying abroad.
• Gender composition: Some studies find a higher price sensitivity of male students. This could imply a further increase in the proportion of female students at Swiss universities.

Higher fees can prompt greater academic effort

The international empirical evidence indicates that tuition fee increases can affect the behaviour of students once they are enrolled. These effects include:

• Greater academic effort: Students tend to allocate more time to their studies.
• Faster completion rates: Higher fees create incentives to graduate on time.
• Shifts in subject choice: Increased fees may discourage enrolment in fields with lower post-graduation income prospects.

While these effects have been shown to exist, none of them was found to be quantitatively large.

Financial support to disadvantaged students can neutralise regressive effects

Analyses of large-scale fee changes in the UK and Ireland show that means-tested grants and student loans can maintain equitable access to higher education despite increases in tuition fees. 

In England, a combination of fee hikes and enhanced grant and loan schemes was found on balance to favour a slightly higher representation of students from disadvantaged backgrounds. 

If implemented in Switzerland, a compensating increase in the generosity and accessibility of financial support could likewise ensure that fee increases do not disadvantage low-income students.

Educational inequalities are mostly shaped before students reach university age

The available research suggests that inequality in university access by family background is almost entirely predetermined by student outcomes at the primary and secondary school levels. Tuition fees play a comparatively minor role.

Nevertheless, a uniform increase in Swiss university fees would risk exacerbating such inequalities. Offsetting changes in the accessibility and generosity of means-tested support would therefore be key to safeguarding equitable access to higher education.