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Hashem Dezhbakhsh and John Karikari

Contemporary Economic Policy, 2010, vol. 28, issue 1, 94-109

Abstract: This study examines the enrollment decisions of freshmen applicants to highly selective private colleges relative to highly selective public colleges. The empirical analysis shows that college enrollment varies by family income—in particular, low‐income students with demonstrated financial need are less likely to enroll at private colleges, controlling for other factors including race and financial aid. Grant aid tends to have a moderating effect but the amount of aid under the existing college pricing and financial aid system appears to be inadequate. This finding provides support for recent revamping of financial aid offerings to low‐income students by some highly selective private colleges. In addition, the results suggest that while family income appears to be a strong determinant of enrollment at these colleges, race does not seem to play a role. (JEL I21)

Date: 2010
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