Socioeconomic disadvantage, ability to pay and university attendance in Australia

Evidence from around the world shows low university participation among young people from low socioeconomic status backgrounds. A common concern is that disadvantaged young people may be unable to afford higher education costs. Using data on government benefits intended to support students from low income households in high school, we identify students at risk of being unable to pay higher education costs. Large differences in university participation rates are observed which are no longer evident after controlling for high school achievement. Results suggest improving high school achievement is an important channel through which disadvantaged student participation may be improved.