The challenge
Higher education is key to economic growth and personal development. Classical human capital models suggest that university participation leads to positive economic outcomes. Yet understanding university access is complex, given the heavily regulated nature of Australia’s higher education system. Rising tuition costs and the structure of government support raise important questions: how can policies best encourage enrolment, support universities, and ensure equitable access?
The research
This project examines how the Australian higher education system—including tuition policies and the income-contingent loan (ICL) scheme—shapes access and outcomes for different student populations. Using micro-level tax data alongside applied and theoretical approaches, it models student behaviour and policy impacts.
Our work encompasses four key strands:
- Tuition Increases and University Behaviour: Theory and Evidence on Student Enrolment
This research examines how universities can affect enrollment in the face of government-set tuition. It combines a theoretical framework with empirical analysis using administrative data to provide a comprehensive understanding of the factors shaping university participation.
- Gender Differences in University and STEM Majors: The Role of Tuition Policy in Australia
This research examines how men and women respond differently to changes in tuition, both for university entry and STEM major choice, using a 30-year Australian individual-level administrative dataset. This research highlights how tuition policy interacts with gender-specific incentives to shape enrolment patterns and field-of-study choices.
- Income-Contingent Student Loans: Impacts on Earnings and Life Decisions
Student loan policies determine educational opportunities but may also create debt burdens that influence career choices and life decisions. This research evaluates how student loans affect labour market participation and life trajectories, aiming to inform optimal loan design that maximises opportunity while minimising disadvantage.
- Transitions into University: Regional and Socio-Economic Differences
This study examines how tuition policies shape access for specific subgroups—including women and students from disadvantaged regions—highlighting regional and socio-economic differences in university participation.
The impact
This project provides policymakers with evidence and tools to:
- Model and test the role of universities for increasing domestic student enrollment.
- Deeper assessments of undergraduate enrollment by field of study.
- Understanding the role of tuition on gender differences in enrollment in STEM and non-STEM fields.
- Assess the medium and long-term effects of increased student debt on post-schooling employment and socio-economic outcomes.
Our partners
Australian Research Council (ARC) Linkage Project – ARC LP190100117
Our researchers
Melbourne Institute - A. Abigail Payne (Investigator).
Melbourne Institute - Ana Gamarra Rondinel (Investigator).
McMaster University - Katherine Cuff (International collaborator).