College on the Cheap: Consequences of Community College Tuition Reductions | Zendy

Jeffrey T. Denning | Zendy

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College on the Cheap: Consequences of Community College Tuition Reductions

Author(s) -

Jeffrey T. Denning

Publication year - 2017

Publication title -

american economic journal economic policy

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 7.868

H-Index - 62

eISSN - 1945-7731

pISSN - 1945-774X

DOI - 10.1257/pol.20150374

Subject(s) - community college , graduation (instrument) , demographic economics , college education , demography , political science , medical education , mathematics education , psychology , economics , sociology , medicine , engineering , mechanical engineering

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.

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