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Working Paper
Affirmative Action and Racial Segregation
Hinrichs, Peter (2019-10-17)
Prior research suggests that statewide affirmative action bans reduce minority enrollment at selective colleges while leaving overall minority college enrollment unchanged. However, the effect of these bans on across-college racial segregation has not yet been estimated. This effect is theoretically ambiguous due to a U-shaped relationship across colleges between minority enrollment and college selectivity. This paper uses variation in the timing of affirmative action bans across states to estimate their effects on racial segregation as measured by standard exposure and dissimilarity indexes, ...
Working Papers , Paper 16-36R

How Important Is Instructional Spending to College Students’ Future Earnings?
Leukhina, Oksana; Bass, Mickenzie (2024-10-08)
Do colleges that invest more in instructional spending—on faculty, libraries, science labs—offer an education that translates into higher earnings for students?
On the Economy

Working Paper
The Expanding Landscape of Online Education: Who Engages and How They Fare
Barrow, Lisa; Morris, Wesley; Sartain, Lauren (2022-11)
Online offerings at traditional brick-and-mortar universities have become common, though some question if online courses can adequately substitute for thein-person college experience. We explore changes in undergraduate online course enrollment at a large, public 4-year system and the impacts of online courses onstudent outcomes. Online enrollment in courses nearly doubled from 2012 to 2019 when almost 40 percent took at least one class online. Female students and older students were especially likely to take online classes. Using an instrumental variables approach, we find that GPAs are ...
Working Paper Series , Paper WP 2022-52

Discussion Paper
When College Might Not Be Worth It
Abel, Jaison R.; Deitz, Richard (2025-04-16)
In our last post, we showed that the economic benefits of a college degree still far outweigh the costs for the typical graduate, with a healthy and consistent return of 12 to 13 percent over the past few decades. But there are many circumstances under which college graduates do not earn such a high return. Some colleges are much more expensive than average, and financial aid is not guaranteed no matter which college a student attends. In addition, the potentially high cost of living on campus was not factored into our estimates. Some students also may take five or six years to finish their ...
Liberty Street Economics , Paper 20250416b

Speech
Why I Want You to Study Economics: Increasing Diversity, Inclusion, and Opportunity in Economics; 04-04-18; Central State University College of Business, Wilberforce, OH
Mester, Loretta J. (2018-04-04)
Part of the Leaders, Executives, Entrepreneurs, and Directors (LEED) Program. At the Federal Reserve, we are proud of the fact that while the first two attempts at central banks in the U.S. lasted only 20 years each, the Fed is in its 105th year. But Central State is even older. Founded in 1887, the university recently celebrated its 131st birthday. Central State?s designation as a historically black college and its focus on providing a high-quality academic experience to all students are things to be proud of. They make this university a very good place for me to speak about the benefits of ...
Speech , Paper 96

Working Paper
Does Salient Financial Information Affect Academic Performance and Borrowing Behavior among College Students?
Schmeiser, Maximilian D.; Stoddard, Christiana; Urban, Carly (2015-09-10)
While rising student loan debt can plague college students future finances, few federal programs have been instituted to educate college students on the mechanics of student loan borrowing. This paper exploits a natural experiment in which some students received "Know Your Debt" letters with incentivized offers for one-on-one financial counseling. Montana State University students who reached a specific debt threshold received these letters; University of Montana students did not. We use a difference-in-difference-in-differences strategy to compare students above and below the thresholds ...
Finance and Economics Discussion Series , Paper 2015-75

Report
Do colleges and universities increase their region's human capital?
Abel, Jaison R.; Deitz, Richard (2009-10-01)
We investigate whether the degree production and research and development (R&D) activities of colleges and universities are related to the amount and types of human capital present in the metropolitan areas where the institutions are located. We find that degree production has only a small positive relationship with local stocks of human capital, suggesting that migration plays an important role in the geographic distribution of human capital. Moreover, we show that spillovers from academic R&D activities tilt the structure of local labor markets toward occupations requiring innovation and ...
Staff Reports , Paper 401

Working Paper
Who Has the Time? Community College Students’ Time-Use Response to Financial Incentives
Barrow, Lisa; Rouse, Cecilia Elena; McFarland, Amanda (2020-01-17)
We evaluate the effect of performance-based scholarship programs for postsecondary students on student time use and effort and whether these effects are different for students we hypothesize may be more or less responsive to incentives. To do so, we administered a time-use survey as part of a randomized experiment in which community college students in New York City were randomly assigned to be eligible for a performance-based scholarship or to a control group that was only eligible for the standard financial aid. This paper contributes to the literature by attempting to get inside the ...
Working Paper Series , Paper WP-2020-03

Working Paper
Navigating Higher Education Insurance: An Experimental Study on Demand and Adverse Selection
Balakrishnan, Sidhya; Bettinger, Eric; Kofoed, Michael S.; Ritter, Dubravka; Webber, Douglas A.; Aksu, Ege; Hartley, Jonathan S. (2024-04-19)
We conduct a survey-based experiment with 2,776 students at a non-profit university to analyze income insurance demand in education financing. We offered students a hypothetical choice: either a federal loan with income-driven repayment or an income-share agreement (ISA), with randomized framingof downside protections. Emphasizing income insurance increased ISA uptake by 43%. We observe that students are responsive to changes in contract terms and possible student loan cancellation, which is evidence of preference adjustment or adverse selection. Our results indicate that framing specific ...
Finance and Economics Discussion Series , Paper 2024-024

Discussion Paper
Hispanic Postsecondary Enrollment Increases Throughout the Fifth District
Ullrich, Laura Dawson; Latham, Sierra (2022-12-16)
Colleges and universities across the country have become more racially and ethnically diverse over the last decade. While 62.6 percent of students enrolled in higher education in the U.S. identified as white in 2010, that rate had fallen to 54.0 percent in 2020. (Note: throughout the article, white refers to non-Hispanic white and Black refers to non-Hispanic Black.) The percentage of students identifying as Black also fell, declining from 15.0 percent in 2010 to 13.1 percent in 2020. So which minority groups experienced growth? While the Asian share of enrollment grew from 6.3 percent to 7.7 ...
Regional Matters

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