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The Distributional Effects of Direct College Costs

  • Gemus, Jonathan


    (Uppsala Center for Labor Studies)

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    This paper examines the distributional impacts of direct college costs { that is, whether the response of educational decisions to college costs varies by student characteristics. The primary obstacle in estimating these e ects is the endogeneity of schooling costs. To overcome this issue, I use two measures of direct costs that are plausibly exogenous: living within commuting distance to a university and the elimination of the Social Security Student Bene t Program in the United States. Both sources of variation indicate that lower ability students are the most responsive to changes in college costs. In contrast, I nd that the e ect of both cost measures on college attendance and graduation does not substantially vary by family income, parent education, race or gender.

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    Paper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Labor Studies with number 2010:16.

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    Length: 38 pages
    Date of creation: 31 Oct 2010
    Date of revision:
    Handle: RePEc:hhs:uulswp:2010_016
    Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
    Phone: + 46 18 471 25 00
    Fax: + 46 18 471 14 78
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