Pricing Out the Disadvantaged? The Effect of Tuition Deregulation in Texas Public Four-Year Institutions

Abstract

This article examines whether tuition deregulation in Texas (in 2003 the state legislature gave tuition-setting authority to institutional governing boards) has affected the college enrollment of underrepresented and low-income students. Using a difference-in-differences research design, we find that Hispanic students have been most negatively affected by tuition deregulation. Results for black students are largely mixed, in that we find an increase in college enrollment after deregulation in some specifications, while Pell Grant recipients, incoming and returning, appear to have experienced an increase in college enrollment following deregulation. Implications and recommendations for state governments considering this contentious legislation are provided.