Alternative Student-Based Revenue Streams for Higher Education Institutions: A Difference-in-Difference Analysis Using Guaranteed Tuition Policies

Jennifer Delaney and Tyler D. Kearney

The Journal of Higher Education, 2016, vol. 87, issue 5, 731-769

Abstract: This study considered the impact of state-level guaranteed tuition programs on alternative student-based revenue streams. It used a quasi-experimental, difference-in-difference methodology with a panel dataset of public four-year institutions from 2000–2012. Illinois' 2004 “Truth-in-Tuition” law was used as the policy of interest and the treatment condition. Following the introduction of Illinois' guaranteed tuition law, required fees and out-of-state tuition increased significantly at institutions subject to the law, but not the number or percent of out-of-state students. These results were robust to specifications with alternative comparison groups and the inclusion of state-specific linear time trends.

Date: 2016
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DOI: 10.1080/00221546.2016.11777420

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