Policies That Influence The Cost Of Education

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Policies that influence the cost of education affect people’s decisions to attend college. Previous literature discuss policies and programs influencing marginal benefits and the cost of obtaining a college education, such as the Pell Grant (Seftor and Turner 2002, Rubin 2011, Kane 2003), financial aid and assistance programs (Cornwell, Mustard, and Sridhar 2006, Dynarski 2003, Kane 2007) and insurance provision (Cohodes et al. 2016, Miller and Wherry 2016). These studies provide evidence that increasing exposure to the information of assistantships and expanding eligibility of assistantship programs improves college enrollment. We assume health insurance works in a similar way to financial aid and assistantship programs by reducing the…show more content…
Therefore, the pre-reform period covers 2007-2010 survey year (2006-2009 calendar year). Considering the potential differential impacts of the reform, we further separate the post-reform period into the enactment stage, 2011 survey year (2010 calendar year) and the implementation stage, from 2012 to 2016 survey year (2011-2015 calendar year). The model used is: y_iast=b_0+b_1*〖Enact〗_t+b_2*〖Implement〗_t+ b_3*〖Eligibility〗_a+b_4* (〖Enact〗_t* 〖Eligibility〗_a )+b_5*(〖Implement〗_t*〖Eligibility〗_a )+b_6*X_iast+b_7* 〖Unemployment〗_st+b_8*〖AgespecificUnemployment〗_ast+〖state〗_s+〖year〗_t+ε_iast, (1) where the outcome variable y_iast is college enrollment, defined as one if individual i in the eligibility group a is enrolled in college in state s from year t when the interview is conducted and already graduated from high school; 〖Enact〗_t is a dummy variable for the initial post-reform stage, defined as one if the survey year equals 2011 and zero otherwise; 〖Implement〗_t is a dummy variable for the full implementation of the post-reform stage, defined as one if the survey year falls into 2012-2016 and zero otherwise; 〖Eligibility〗_ais the age eligibility dummy variable, defined as one for the age group 19-25 and zero for the age group 26-30; x_iast is a set of individual control variables including age, gender, marital status, race, ethnicity, high
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