Price Regulation, Price Discrimination, and Equality of Opportunity in Higher Education: Evidence from Texas

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2019
Volume: 11
Issue: 4
Pages: 31-65

Authors (2)

Rodney J. Andrews (not in RePEc) Kevin M. Stange (University of Michigan)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We assess the importance of price regulation and price discrimination to low-income students' access to opportunities in public higher education. In 2003, Texas shifted tuition-setting authority away from the state legislature to public universities themselves. In response, most institutions raised sticker prices and many began charging more for high-earning majors, such as business and engineering. We find that poor students actually shifted toward higher earning programs following deregulation, relative to non-poor students. Deregulation facilitated more price discrimination through increased grant aid and enabled supply-side enhancements, which may have partially shielded poor students from higher sticker prices.

Technical Details

RePEc Handle
repec:aea:aejpol:v:11:y:2019:i:4:p:31-65
Journal Field
General
Author Count
2
Added to Database
2026-01-29