The Impact of Tuition Increases on Undocumented College Students' Attainment

Abstract

We examine the impact of a temporary price shock on the attainment of undocumented college students enrolled in a large urban college system. In spring 2002, the City University of New York reversed its policy of charging in-state tuition to undocumented students. By fall 2002, the state legislature restored in-state rates. Using a differences-in-differences identification strategy, we estimate impacts on reenrollment, credits, grades, and degree completion. The price shock led to an immediate 8 percent decrease in senior college students' enrollment. Senior college students who entered college the semester prior to the price shock experienced lasting reductions in attainment, including a 22 percent decrease in degree receipt. Conversely, among senior college students who been enrolled for at least a year, the price shock only affected the timing of exit.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.