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College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities

Pietro Garibaldi (), Francesco Giavazzi, Andrea Ichino and Enrico Rettore ()
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Francesco Giavazzi: Bocconi University, MIT, NBER, and CEPR

The Review of Economics and Statistics, 2012, vol. 94, issue 3, 699-711

Abstract: University tuition typically remains constant throughout the years of enrollment while delayed degree completion is increasingly a problem for academic institutions around the world. Theory suggests that if continuation tuition were raised, the probability of late graduation would be reduced. Using a regression discontinuity design on data from Bocconi University in Italy, we show that a 1,000 euro increase in continuation tuition reduces the probability of late graduation by 5.2% when the benchmark probability is 80%. This decline is not associated with an increase in the dropout rate or a fall in the quality of students performance. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Keywords: tuition; students’ performance; regression discontinuity (search for similar items in EconPapers)
JEL-codes: I20 C31 (search for similar items in EconPapers)
Date: 2012
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Related works:
Working Paper: College cost and time to complete a degree: Evidence from tuition discontinuities (2009) Downloads
Working Paper: College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities (2007) Downloads
Working Paper: College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities (2007) Downloads
Working Paper: College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities (2007) Downloads
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