The effects of free tuition policy on university academic performance in Chile

In 2016 Chile initiated a policy of free tuition for students from families in the lower half of the income distribution to improve access to and completion of higher education. The empirical effectiveness of the policy has not yet been completely demonstrated. This study analysed the difference in levels of academic performance of students enrolled in 12 Chilean universities with and without free tuition. The study used a regression discontinuity design with a running discrete variable locally randomised. The results show that the academic performance of students receiving free tuition was equivalent to that of students paying the full cost. There was no difference in the course pass rate of those with or without free tuition. Over time the effects of the policy could reduce inequality in the professional labour market. In addition, the study suggests that there may be complementary practices that further improve university student achievement and completion rates.