Abstract
Many public universities have sought to increase the number of students they enroll from other states, with the assumption that a larger share of nonresident students increases institutional revenues and prestige. In this paper, I examine the extent to which out-of-state undergraduate student enrollment shares are associated with changes in per-student revenue and expenditure patterns at four-year public universities both as a whole and by selectivity and Carnegie classification. I find that an increase in the percentage of students from out of state is associated with decreases in per-student tuition revenue and is often associated with a decline in per-student expenditures.
Highlights
Many public universities have sought to increase the number of students they enroll from other states, with the assumption that a larger share of nonresident students increases institutional revenues and prestige
A one percent increase in out-of-state enrollment was associated with a decline in tuition revenue of between 0.031 and 0.069 percentage points in the following three years
(3) All dollar values are adjusted to 2016 dollars using the Consumer Price Index. (4) * indicates p
Summary
Many public universities have sought to increase the number of students they enroll from other states, with the assumption that a larger share of nonresident students increases institutional revenues and prestige. Selective public universities in particular have been able to use nonresident students as a revenue source due to the relative insensitivity of these students to tuition increases (Adkisson & Peach, 2008; Zhang, 2007). This has created equity concerns, as there is evidence that increased nonresident enrollment at selective public universities was associated with the crowding out of historically underrepresented in-state students (Jaquette et al, 2016)
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