Working Paper: NBER ID: w29829
Authors: Emily E. Cook; Sarah Turner
Abstract: Substantial increases in public university tuition often raise concerns about college affordability. But assessment of the impacts on low- and moderate-income families requires consideration of whether net tuition—tuition less grant aid—has increased commensurately. This paper describes recent shifts in net tuition by family income and institution type and assesses the role of changes in state funding in generating these shifts. Using data reported by universities on net tuition paid by students from different family income levels, we find that public research universities have increasingly shifted to high-tuition, high-aid pricing. From 2012 to 2018, net tuition fell by far more than would have been predicted by the growth in state appropriations, while tuition levels continued to rise, albeit at a slower rate than in the prior years. The increased progressivity in pricing, particularly among research universities, cannot be explained by changes in state appropriations.
Keywords: No keywords provided
JEL Codes: H7; I2; I23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| state funding (I22) | net tuition (I22) |
| tuition increases (I22) | net tuition for low and moderate-income families (I22) |
| state funding (I22) | increased progressivity in pricing (P22) |
| tuition (I22) | net tuition (varies by institution type) (I22) |
| market demand and revenue diversification (R22) | increased progressivity in pricing (P22) |
| tuition policy (I22) | representation of low-income students at R1 universities (I24) |