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College on the Cheap: Consequences of Community College Tuition Reductions

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  • Jeffrey T. Denning

Abstract

This paper examines the effects of community college tuition on college enrollment. I exploit quasi-experimental variation from discounts for community college tuition in Texas that were expanded over time and across geography for identification. Community college enrollment in the first year after high school increased by 5.1 percentage points for each $1,000 decrease in tuition, which implies an elasticity of -0.29. Lower tuition also increased transfer from community colleges to universities. Marginal community college enrollees induced to attend by reduced tuition have similar graduation rates as average community college enrollees.

Suggested Citation

  • Jeffrey T. Denning, 2017. "College on the Cheap: Consequences of Community College Tuition Reductions," American Economic Journal: Economic Policy, American Economic Association, vol. 9(2), pages 155-188, May.
    • Handle: RePEc:aea:aejpol:v:9:y:2017:i:2:p:155-88
    Note: DOI: 10.1257/pol.20150374
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    Cited by:

    1. Pavlov, Oleg V. & Katsamakas, Evangelos, 2023. "Tuition too high? Blame competition," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 409-431.
    2. Estelle Herbaut & Koen Geven, 2019. "What Works to Reduce Inequalities in Higher Education? A Systematic Review of the (Quasi-)Experimental Literature on Outreach and Financial Aid," Working Papers hal-03456943, HAL.
    3. James Dean Ward & Daniel Corral & Catharine Bond Hill, 2024. "Examining the Effects of Tuition Reset Policies on Enrollment and Institutional Finances at Minority Serving Institutions," NBER Chapters, in: Financing Institutions of Higher Education, National Bureau of Economic Research, Inc.
    4. Jeffrey T. Denning & Todd R. Jones, 2021. "Maxed Out?: The Effect of Larger Student Loan Limits on Borrowing and Education Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 56(4), pages 1113-1140.
    5. Alina Kovalenko, 2023. "Natural Resource Booms, Human Capital, and Earnings: Evidence from Linked Education and Employment Records," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 184-217, April.
    6. Ferreyra,Maria Marta & Garriga,Carlos & Martin,Juan David & Sanchez Diaz,Angelica Maria, 2020. "Raising College Access and Completion : How Much Can Free College Help ?," Policy Research Working Paper Series 9428, The World Bank.
    7. William N. Evans & Melissa S. Kearney & Brendan Perry & James X. Sullivan, 2020. "Increasing Community College Completion Rates Among Low‐Income Students: Evidence from a Randomized Controlled Trial Evaluation of a Case‐Management Intervention," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 930-965, September.
    8. Dinarte Diaz,Lelys Ileana & Ferreyra,Maria Marta & Urzua,Sergio & Bassi,Marina, 2021. "What Makes a Program Good ? Evidence from Short-Cycle Higher Education Programs in LatinAmerica and the Caribbean," Policy Research Working Paper Series 9722, The World Bank.
    9. repec:hal:spmain:info:hdl:2441/527ht1a96e837pq2dubgo2953q is not listed on IDEAS
    10. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).
    11. Thomsen, Stephan L. & Trunzer, Johannes, 2020. "Did the Bologna Process Challenge the German Apprenticeship System? Evidence from a Natural Experiment," IZA Discussion Papers 13806, Institute of Labor Economics (IZA).
    12. Estelle Herbaut & Koen Geven, 2019. "What Works to Reduce Inequalities in Higher Education? A Systematic Review of the (Quasi-)Experimental Literature on Outreach and Financial Aid," Sciences Po publications info:hdl:2441/527ht1a96e8, Sciences Po.
    13. George Bulman & Robert Fairlie & Sarena Goodman & Adam Isen, 2021. "Parental Resources and College Attendance: Evidence from Lottery Wins," American Economic Review, American Economic Association, vol. 111(4), pages 1201-1240, April.
    14. Marina Bassi & Lelys Dinarte-Diaz & Maria Marta Ferreyra & Sergio Urzua, 2023. "What Makes a Program Good? Evidence from Short-Cycle Higher Education Programs in Five Developing Countries," CESifo Working Paper Series 10255, CESifo.
    15. Ferreyra,Maria Marta & Galindo,Camila & Urzúa,Sergio, 2021. "Labor Market Effects of Short-Cycle Higher Education Programs : Lessons from Colombia," Policy Research Working Paper Series 9717, The World Bank.
    16. Mariano Runco & James Francisco & Jeff Bates, 2019. "The Impact of Tuition Increases on Enrollment in the State of Alabama Public Colleges and Universities," Economics Bulletin, AccessEcon, vol. 39(4), pages 2697-2705.
    17. Anderson, Drew M. & Goldrick-Rab, Sara, 2018. "Aid after enrollment: Impacts of a statewide grant program at public two-year colleges," Economics of Education Review, Elsevier, vol. 67(C), pages 148-157.
    18. Delaney, Taylor & Marcotte, Dave E., 2022. "Public Higher Education Costs and College Enrollment," IZA Discussion Papers 15320, Institute of Labor Economics (IZA).
    19. Benjamin W. Cowan & Nathan Tefft, 2020. "College Access and Adult Health," NBER Working Papers 26685, National Bureau of Economic Research, Inc.
    20. Alvaro Mezza & Daniel R. Ringo & Shane M. Sherlund & Kamila Sommer, 2016. "Student Loans and Homeownership," Finance and Economics Discussion Series 2016-10, Board of Governors of the Federal Reserve System (U.S.).
    21. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    22. Ana Maria Montoya & Carlos Noton & Alex Solis, 2017. "Returns to Higher Education: Vocational Education vs College," Documentos de Trabajo 334, Centro de Economía Aplicada, Universidad de Chile.
    23. Justin C. Ortagus & Melvin J. Tanner & Isaac McFarlin Jr., 2020. "Can Re-Enrollment Campaigns Help Dropouts Return to College? Evidence from Florida Community Colleges," NBER Working Papers 26649, National Bureau of Economic Research, Inc.
    24. Estelle Herbaut & Koen Geven, 2019. "What Works to Reduce Inequalities in Higher Education? A Systematic Review of the (Quasi-)Experimental Literature on Outreach and Financial Aid," SciencePo Working papers Main hal-03456943, HAL.

    More about this item

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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