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Tax Benefits for Graduate Education: Incentives for Whom?

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  • Bednar, Steven

    ()
    (Elon University)

  • Gicheva, Dora

    ()
    (University of North Carolina at Greensboro, Department of Economics)

Abstract

Numerous studies have examined the enrollment responses of traditional undergraduate students to the introduction of government-provided tuition subsidies, but far less attention has been devoted to the elasticity of demand for graduate education. This paper examines how the tax code and government education policies affect graduate enrollment and persistence rates along with the ways in which students fund their graduate education. Our empirical methodology is based on exogenous variations in the availability of an income tax exemption for employer- provided tuition assistance for graduate courses. We find that graduate attendance among full-time workers age 24-30 is higher when the tax exemption is available, mostly due to higher persistence in public universities and vocational course work. The use of employer aid for individuals enrolled in full-time and public part-time graduate programs also increases. We present some evidence that universities may adjust tuition to capture part of the incidence.

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Bibliographic Info

Paper provided by University of North Carolina at Greensboro, Department of Economics in its series Working Papers with number 13-17.

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Length: 45 pages
Date of creation: 07 Oct 2013
Date of revision:
Handle: RePEc:ris:uncgec:2013_017

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Postal: Box 26165, Greensboro, NC 27402-6165
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Fax: (336) 334-4089
Web page: http://www.uncg.edu/bae/econ/
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Keywords: Educational Finance; Tax Code; Graduate Education; Employer- Provided Tuition Subsidies;

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References

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Cited by:
  1. Amuedo-Dorantes, Catalina & Sparber, Chad, 2012. "In-State Tuition for Undocumented Immigrants and its Impact on College Enrollment, Tuition Costs, Student Financial Aid, and Indebtedness," IZA Discussion Papers 6857, Institute for the Study of Labor (IZA).

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