by Annie Cui

Abstract

To what extent has the free higher education policy of 1974 impacted Australian
students’ decisions of university enrollment, degree completion, and later-life human capital
development? In this paper, I analyze the impact of the policy from both national descriptive
statistics and individual-level enrollment and degree completion decisions using the Australian
Household Income and Labour Dynamics Survey. I find that the policy has significantly
increased the likelihood of female enrollment in higher education, low-income students’
likelihood of diploma degree completion, and is positively associated with later-life occupational
status. However, this study does not find a clear relationship between the policy, bachelor’s
degree attainment, and later-life disposable income. Policymakers need to carefully consider the
efficiency and efficacy of broad-based tuition policy instruments when imagining bridges to
achieve universal access to higher education.

Professor Robert Garlick, Faculty Advisor
Professor Peter Arcidiacono, Faculty Advisor
Professor Michelle Connolly, Seminar Advisor

JEL Classification: I22; I23; I26

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