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Author(s):Steven Hemlet, Dave Marcotte
Title:Rising Tuition and Enrollment in Public Higher Education
Source:http://ftp.iza.org/dp3827.pdf
Date:November 2008
Organization:Institute for the Study of Labor
Short Description:Looks at IPEDS data to determine the relationship between increased tuition and fees and decreased enrollment. Historical data suggests a .5 to 1 percent decrease in enrollment for each $100 increase in tuition which is supported by their work. Evidence suggests state appropriations drive pricing decisions at four-year public institutions and that large jumps in tuition do not appear to any more impact than a series of smaller tuition increases. Responses and elasticities vary across institution type. Enrollment is more sensitive at research universities than at comprehensive universities and public liberal arts schools. Tuition increases at comprehensive universites don't necessarily mean lower enrollment, rather they mean more reliance on sid for those student who do enroll.
Annotation:Looks at IPEDS data to determine the relationship between increased tuition and fees and decreased enrollment. Suggests that while college administrators might believe that any reduction in revenue from an enrollment decline associated with an increase in price will be samll enough that net revenues will rise, the real impact is limiting educational attainment in the aggregate. Historical data suggests a .5 to 1 percent decrease in enrollment for each $100 increase in tuition which is supported by their work. Evidence suggests state appropriations drive pricing decisions at four-year public institutions and that large jumps in tuition do not appear to any more impact than a series of smaller tuition increases. Responses and elasticities vary across institution type. Enrollment is more sensitive at research universities than at comprehensive universities and public liberal arts schools. Tuition increases at comprehensive universites don't necessarily mean lower enrollment, rather they mean more reliance on sid for those student who do enroll. -MS
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Associated Keywords:
Affordability, Tuition and College Costs
Enrollment
Participation

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