Rethinking Tuition Effects on Enrollment in Public Four-year Colleges and Universities

Abstract

This study examined the effects of ftuition on enrollment in public colleges and universities. The causal model included competitorsÕ tuition, the wage premium for possessing a college degree, financial aid, and unemployment rate as additional independent variables. The data included institution- and state-level data information over five academic years (1998-2002). The definition of college enrollment for this inquiry was the number of first-time students, including only those from in-state. This study found that tuition level did not have an effect on the growth in enrollment. However, the tuition level of competing institutions and the wage premium to a college degree had positive and significant effects on college enrollment growth.

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