Year: 2011
Type: article
Study design: Observational Study
Abstract: Tax-based federal student aid—the Hope Tax Credit, Lifetime Learning Tax Credit, and Tuition Deduction—marks a new paradigm for federal aid by offering tax incentives for postsecondary enrollment for the middle class. I exploit policy-induced variation in tax-based aid eligibility to estimate its causal effect on college enrollment. I find that tax-based aid increases full-time enrollment in the first two years of college for 18 to 19 years old by 7 percent. The price sensitivity of enrollment suggests that college enrollment increases 0.3 percentage points per $100 of taxbased aid. The programs do not appear to substantively affect part-time enrollment in the first two years of college.
Source: National Tax Journal
Author: Nicholas Turner
Institution: University of California San Diego
Language: English
Subfield: Education
Field: Social Sciences
Domain: Social Sciences
SDG: Quality education
Open Access status: hybrid
Funders: Sage Foundation, Harvard University
OpenAlex ID: W1496598671