Price Regulation, Price Discrimination, and Equality of Opportunity in Higher Education: Evidence from Texas
Rodney J. Andrews
Kevin M. Stange
- American Economic Journal: Economic Policy (Forthcoming)
We assess the importance of price regulation and price discrimination to low-income students’ access to opportunities in public higher education. In 2003, Texas shifted tuition-setting authority away from the state legislature to public universities themselves; in response, most institutions raised sticker prices and many began charging more for high-earning majors, such as business and engineering. We find that poor students actually shifted towards higher-earning programs following deregulation, relative to non-poor students. Deregulation facilitated more price discrimination through increased grant aid and enabled supply-side enhancements, which may have partially shielded poor students from higher sticker prices.
Forthcoming Article Downloads