Pricing Out the Disadvantaged? The Effect of Tuition Deregulation on Underrepresented Students in Texas

• In Event: Tuition Pricing Policy and Underrepresented Students

Abstract

Using a difference-in-difference strategy, this analysis examines whether a sudden change in tuition setting authority leading to higher tuition in Texas impacted the college enrollment of underrepresented students defined as Hispanic, Black, and Pell grant recipients. We find that despite their impressive demographic growth as a proportion of the college age population, Hispanic students are the group most negatively affected by tuition deregulation. Results for Black students are largely mixed while Pell grant recipients appear to have experienced an increase in college enrollment during the time period. Explanations regarding supplementary infusion of financial aid to offset tuition costs, and selection of students as those entering four-year institutions in the Pell grant recipient sample, are offered.

Authors

• Stella M. Flores, Vanderbilt University

• Justin Shepherd, Vanderbilt University