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

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.

• higher education
• quasi-experimental
• difference-in-difference
• tuition
• fees
• out-of-state enrollment

Additional information

Notes on contributors

Jennifer A. Delaney

Jennifer A. Delaney is an associate professor of higher education at the University of Illinois at Urbana-Champaign; [email protected].

Tyler D. Kearney

Tyler D. Kearney is the director of planning and analysis at the University of Illinois.