Veteran Educators or For-Profiteers? Tuition Responses to Changes in the Post 9/11 GI Bill

Matthew Baird (), Michael Kofoed, Trey Miller () and Jennie Wenger ()
Additional contact information
Matthew Baird: RAND
Trey Miller: University of Texas at Dallas
Jennie Wenger: RAND

No 13701, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In 2010, Congress reauthorized the Post-9/11 GI Bill by changing reimbursement rates from widely-varying by-state maximums to a nationwide limit. This policy created exogenous variation in the changes in reimbursement rates in direction and magnitude for veterans at private universities. We leverage this variation to examine for-profit college responses to changes in reimbursement rates. We detect tuition responses only for for-profit colleges, where we estimate a one percent pass-through rate. This for- profit response is driven by colleges in states that saw decreased benefits, colleges with higher concentrations of veterans, and colleges whose pre-change tuition was above the state maximum but below the since-increased nationwide level; the last group has a pass-through rate of eight percent. This policy also caused declines in non-veteran populations showing a substitution towards veteran students.

Keywords: price discrimination; Post 9/11 GI Bill; for-profit colleges (search for similar items in EconPapers)
JEL-codes: H52 H56 I23 I28 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2020-09
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Published - published in: Journal of Policy Analysis and Management, 2022, 41 (4), 1012-1039.

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Journal Article: Veteran Educators or For‐Profiteers? Tuition Responses to Changes in the Post‐9/11 GI Bill (2022)
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