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

Author

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

Abstract

For many students throughout the world the time to obtain an academic degree extends beyond 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 a tuition increase of 1,000 euro in the last year of studies would reduce the probability of late graduation by 6.1 percentage points with respect to a benchmark average probability of 80%. We conclude suggesting that an upward sloping tuition profile is efficient in situations in which effort is suboptimally supplied, for instance in the presence of public subsidies to education, congestion externalities and/or peer effects.

Suggested Citation

  • Pietro Garibaldi & Francesco Giavazzi & Andrea Ichino & Enrico Rettore, 2007. "College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities," Carlo Alberto Notebooks 38, Collegio Carlo Alberto.
    • Handle: RePEc:cca:wpaper:38
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    More about this item

    Keywords

    tuition; student performance; regression discontinuity.;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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