Closing the Gap: The Effect of Reducing Complexity and Uncertainty in College Pricing on the Choices of Low-Income Students

IF 10.5 1区 经济学 Q1 ECONOMICS
S. Dynarski, C. Libassi, K. Michelmore, Stephanie Owen
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引用次数: 61

Abstract

High-achieving, low-income students attend selective colleges at far lower rates than upper-income students with similar achievement. Behavioral biases, intensified by complexity and uncertainty in the admissions and aid process, may explain this gap. In a large-scale experiment we test an early commitment of free tuition at a flagship university. The intervention did not increase aid: rather, students were guaranteed before application the same grant aid that they would qualify for in expectation if admitted. The offer substantially increased application (68 percent versus 26 percent) and enrollment rates (27 percent versus 12 percent). The results suggest that uncertainty, present bias, and loss aversion loom large in students' college decisions.
缩小差距:降低大学定价的复杂性和不确定性对低收入学生选择的影响
成绩优异的低收入学生就读选择性大学的比率远低于成绩相似的高收入学生。招生和援助过程中的复杂性和不确定性加剧了行为偏见,这可能解释了这一差距。在一项大规模实验中,我们测试了一所旗舰大学早期的免费学费承诺。干预措施并没有增加援助:相反,学生在申请之前得到了保证,如果被录取,他们将有资格获得同样的助学金援助。该优惠大幅提高了申请率(68%对26%)和入学率(27%对12%)。研究结果表明,不确定性、当前偏见和对损失的厌恶在学生的大学决策中尤为突出。
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来源期刊
CiteScore
18.60
自引率
2.80%
发文量
122
期刊介绍: The American Economic Review (AER) stands as a prestigious general-interest economics journal. Founded in 1911, it holds the distinction of being one of the nation's oldest and most esteemed scholarly journals in economics. With a commitment to academic excellence, the AER releases 12 issues annually, featuring articles that span a wide spectrum of economic topics.
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