Veteran Educators or For-Profiteers? Tuition Responses to Changes in the Post 9/11 Gi Bill

49 Pages Posted: 21 Sep 2020

See all articles by Matthew Baird

Matthew Baird

RAND Corporation

Michael Kofoed

United States Military Academy

Trey Miller

University of Texas at Dallas

Jennie Wenger

RAND

Multiple version iconThere are 2 versions of this paper

Abstract

In 2010, Congress reauthorized the Post-9/11 GI Bill by changing reimbursement rates from widely-varying by-state maximums to a nationwide limit. This policy created exogenous variation in the changes in reimbursement rates in direction and magnitude for veterans at private universities. We leverage this variation to examine for-profit college responses to changes in reimbursement rates. We detect tuition responses only for for-profit colleges, where we estimate a one percent pass-through rate. This for- profit response is driven by colleges in states that saw decreased benefits, colleges with higher concentrations of veterans, and colleges whose pre-change tuition was above the state maximum but below the since-increased nationwide level; the last group has a pass-through rate of eight percent. This policy also caused declines in non-veteran populations showing a substitution towards veteran students.

Keywords: for-profit colleges, Post 9/11 GI Bill, price discrimination

JEL Classification: I23, I28, H52, H56

Suggested Citation

Baird, Matthew and Kofoed, Michael and Miller, Trey and Wenger, Jennie, Veteran Educators or For-Profiteers? Tuition Responses to Changes in the Post 9/11 Gi Bill. IZA Discussion Paper No. 13701, Available at SSRN: https://ssrn.com/abstract=3695402

Matthew Baird

RAND Corporation ( email )

1776 Main Street
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Michael Kofoed (Contact Author)

United States Military Academy ( email )

600 Thayer Rd
West Point, NY 10996
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801-540-8789 (Phone)

HOME PAGE: http://https://sites.google.com/site/michaelkofoed1

Trey Miller

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Jennie Wenger

RAND ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States
310-393-0411 (Phone)

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