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Veteran Educators or For-Profiteers? Tuition Responses to Changes in the Post 9/11 GI Bill

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  • Baird, Matthew

    (RAND)

  • Kofoed, Michael S.

    (University of Tennessee)

  • Miller, Trey

    (University of Texas at Dallas)

  • Wenger, Jennie

    (RAND)

Abstract

In 2010, Congress reauthorized the Post-9/11 GI Bill by changing reimbursement rates from widely-varying by-state maximums to a nationwide limit. This policy created exogenous variation in the changes in reimbursement rates in direction and magnitude for veterans at private universities. We leverage this variation to examine for-profit college responses to changes in reimbursement rates. We detect tuition responses only for for-profit colleges, where we estimate a one percent pass-through rate. This for- profit response is driven by colleges in states that saw decreased benefits, colleges with higher concentrations of veterans, and colleges whose pre-change tuition was above the state maximum but below the since-increased nationwide level; the last group has a pass-through rate of eight percent. This policy also caused declines in non-veteran populations showing a substitution towards veteran students.

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  • Baird, Matthew & Kofoed, Michael S. & Miller, Trey & Wenger, Jennie, 2020. "Veteran Educators or For-Profiteers? Tuition Responses to Changes in the Post 9/11 GI Bill," IZA Discussion Papers 13701, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13701
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    1. Domnisoru, Ciprian, 2023. "The G.I. Bill and Underemployment," IZA Discussion Papers 16444, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    price discrimination; Post 9/11 GI Bill; for-profit colleges;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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