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College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities / Pietro Garibaldi, Francesco Giavazzi, Andrea Ichino, Enrico Rettore.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Garibaldi, Pietro.
Contributor:
National Bureau of Economic Research.
Giavazzi, Francesco.
Ichino, Andrea.
Rettore, Enrico.
Series:
Working Paper Series (National Bureau of Economic Research) no. w12863.
NBER working paper series no. w12863
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
College Cost and Time to Complete a Degree
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2007.
Summary:
Many students enrolled in academic programs around the world take longer to obtain a degree than the normal completion time while college tuition is typically constant during the years of enrollment. In particular, it does not increase when a student remains in a program beyond the normal completion time. Using a Regression Discontinuity Design on data from Bocconi University in Italy, this paper shows that an increase of 1,000 euro in the continuation tuition reduces the probability of late graduation by at least 6.1 percentage points with respect to a benchmark average probability of 80%. We conclude suggesting that an increase in continuation tuition is efficient when effort is suboptimally supplied, for instance in the presence of public subsidies to education, congestion externalities and/or peer effects.
Notes:
Print version record
January 2007.

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