Higher education structure and education outcomes: evidence from the USA

Abstract

This paper documents substantial differences across states in their higher education (HE) structures and highlights several empirical relationships between these structures and individuals’ HE outcomes. Not surprisingly, individuals who are exposed to more-fractionalized HE structures are more likely to attend small public universities and less likely to attend large public universities. Exposure to more-fractionalized structures is also associated with increased degree attainment and increased exits from the in-state public-university system (to private and out-of-state public universities). These findings highlight potentially important tradeoffs related to state policy on HE structure.