Attendance Spillovers between Public and For-Profit Colleges: Evidence from Statewide Variation in Appropriations for Higher Education

Sarena Goodman () and Alice Henriques Volz ()
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Sarena Goodman: Division of Research and Statistics Board of Governors of the Federal Reserve System Washington, DC, 20551
Alice Henriques Volz: Division of Research and Statistics Board of Governors of the Federal Reserve System Washington, DC, 20551

Education Finance and Policy, 2020, vol. 15, issue 3, 428-456

Abstract: Between 2000 and 2010, U.S. public colleges and universities experienced widespread and uneven changes in funding from state and local appropriations. We find that over this period annual decreases in statewide appropriations led to lower public enrollment and higher for-profit enrollment (with no effect on enrollment overall), as well as increased student borrowing. In an analysis of mechanisms, we detect effects on spending, tuition, and capacity in the public sector. Altogether, the results reveal that core institutional resources affect the types of schools that students attend and yield new evidence of substitution between the public and for-profit sectors.

Date: 2020
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