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College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities

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  • Pietro Garibaldi
  • Francesco Giavazzi
  • Andrea Ichino
  • Enrico Rettore

Abstract

Many students enrolled in academic programs around the world take longer to obtain a degree than the normal completion time while college tuition is typically constant during the years of enrollment. In particular, it does not increase when a student remains in a program beyond the normal completion time. Using a Regression Discontinuity Design on data from Bocconi University in Italy, this paper shows that an increase of 1,000 euro in the continuation tuition reduces the probability of late graduation by at least 6.1 percentage points with respect to a benchmark average probability of 80%. We conclude suggesting that an increase in continuation tuition is efficient when effort is suboptimally supplied, for instance in the presence of public subsidies to education, congestion externalities and/or peer effects.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12863.

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Date of creation: Jan 2007
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Publication status: published as Pietro Garibaldi & Francesco Giavazzi & Andrea Ichino & Enrico Rettore, 2012. "College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 699-711, August.
Handle: RePEc:nbr:nberwo:12863

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