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  3. American Economic Journal: Economic Policy
  4. May 2017
  5. College on the Cheap: Consequences of Community College Tuition Reductions

College on the Cheap: Consequences of Community College Tuition Reductions

  • Jeffrey T. Denning
American Economic Journal: Economic Policy
vol. 9, no. 2, May 2017
(pp. 155-88)
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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.

Citation

Denning, Jeffrey T. 2017. "College on the Cheap: Consequences of Community College Tuition Reductions." American Economic Journal: Economic Policy, 9 (2): 155-88. DOI: 10.1257/pol.20150374

Additional Materials

JEL Classification

  • H75 State and Local Government: Health; Education; Welfare; Public Pensions
  • I22 Educational Finance; Financial Aid
  • I23 Higher Education; Research Institutions
  • I28 Education: Government Policy
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