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The Distributional Effects of Direct College Costs

Author

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  • Gemus, Jonathan

    (Uppsala Center for Labor Studies)

Abstract

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.

Suggested Citation

  • Gemus, Jonathan, 2010. "The Distributional Effects of Direct College Costs," Working Paper Series, Center for Labor Studies 2010:16, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uulswp:2010_016
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    File URL: http://www.ucls.nek.uu.se/digitalAssets/136/136480_201016.pdf
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    More about this item

    Keywords

    Schooling Costs; Educational Attainment; Financial Aid Policy;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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