Racial Gaps in Institutional Graduation Rates in the United States: Do Expenditures and Financial Aid Matter?

• In Event: Inequalities in Higher Education

Abstract

We use data from the Integrated Postsecondary Education Data System and 2007 – 2009 incoming freshman cohorts to calculate 6-year graduation rate racial gaps in 2013 – 2015. Using an institutional- contextual approach informed by the multi-factor input-output productivity models, we expect that racial gaps in graduation rates will be lower among institutions with more institutional expenditures and who enroll cohorts with more financial aid. Our results are mixed. The White-Black and White-Hispanic graduation rate gaps are larger at institutions that spend more and place more priority on academic and student services and who enroll cohorts with more student loans. Yet, these gaps shrink at institutions who provide more institutional grant aid and enroll cohorts with more federal and state/local aid.

Authors

• Scott M Myers, Montana State University

• Carrie B. Myers, Montana State University