Friday, November 7, 2014
:
2:10 PM
Aztec (Convention Center)
*Names in bold indicate Presenter
Community college is one of the largest human capital investments made by students in the United States. However, relatively little is known about the price sensitivity of this investment or the long term impacts of community college on educational attainment and labor market outcomes. This paper examines the effects of a reduction in the costs of community college using a natural experiment in Texas where certain K-12 school districts experienced dramatically reduced community college tuition. For high school graduates, a $1000 decrease in the sticker price of community college increased immediate transition to community college by 4.83 percentage points. Lower tuition also increased enrollment in community college every year for six years after high school graduation, university enrollment 4-6 years after high school graduation, and increased community college credits attempted. Attending a community college also increased the probability of a four year degree by 20 percentage points and increased earnings.
