Driven Away: The Relationship Between Gasoline Prices and Community College Student Retention

Abstract

ABSTRACT Previous studies identified student-specific and institutional factors that impact community college student retention. However, few studies have examined associations between commodity prices and community college student retention. Guided by rational choice theory, we examine the relationship between annual, state-level gasoline prices and community college student retention. Using institution fixed effects and data from IPEDS, the Bureau of Labor Statistics, and the Energy Information Administration, we analyze 11,460 observations collected between 2006 and 2019 from 942 community colleges. We find a statistically significant relationship between gasoline prices and retention rates: one dollar increase in gasoline price per gallon is associated with a 0.918% point decrease in community college student retention rates, when accounting for institutional characteristics and local unemployment rates. Our study expands the current literature on the impact of transportation costs on student retention and argues that institutions should work to support students’ financial concerns, including gasoline prices.