Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2003:8: The Effect of a Student Aid Reform on Graduation: A Duration Analysis

Iida Häkkinen () and Roope Uusitalo ()
Additional contact information
Iida Häkkinen: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Roope Uusitalo: Labour Institute for Economic Research, Postal: Pitkänsillanranta 3 A, FIN-00530 Helsinki, Finland

Abstract: In this paper we evaluate the changes in the times-to-degree at the Finnish universities in the 1990s. In particular, we evaluate the effect of the 1992 student aid reform that was intended to shorten the duration of university studies. We find that the student aid reform had only a modest effect, and that this effect was limited to the fields with long median durations. Most of the decline in the observed times-to-degree can be explained by an increase in the unemployment rate that reduced student employment opportunities.

Keywords: Times-to-degree; university education; student aid; duration analysis

JEL-codes: I22

25 pages, February 6, 2003

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