Price regulation, price discrimination, and equality of opportunity in higher education: Evidence from Texas

We assess the importance of price regulation and price discrimination to low-income students' access to opportunities in public higher education. In 2003, Texas shifted tuition-setting authority away from the state legislature to public universities themselves. In response, most institutions ra...

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Bibliographic Details
Main Authors: Andrews, R.J (Author), Stange, K.M (Author)
Format: Article
Language:English
Published: American Economic Association 2019
Online Access:View Fulltext in Publisher
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Summary:We assess the importance of price regulation and price discrimination to low-income students' access to opportunities in public higher education. In 2003, Texas shifted tuition-setting authority away from the state legislature to public universities themselves. In response, most institutions raised sticker prices and many began charging more for high-earning majors, such as business and engineering. We find that poor students actually shifted toward higher earning programs following deregulation, relative to non-poor students. Deregulation facilitated more price discrimination through increased grant aid and enabled supply-side enhancements, which may have partially shielded poor students from higher sticker prices. (JEL D63, H75, I22, I23, I24, I28, I32). © 2019 American Economic Association.
ISBN:19457731 (ISSN)
DOI:10.1257/pol.20170306