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The Adverse Effect of Decreasing State Support for Higher Education on Student Diversity

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Cuts in state funding reduce the representation of minority students in higher education, impacting diversity.
Analysis indicates that Hispanic student enrollment is particularly sensitive to changes in state appropriations.
The methodology involved a shift-share instrumental variable approach to establish causality in the funding-diversity relationship.
Findings suggest that lower appropriations lead to higher tuition, increased costs, and more student debt, affecting access.

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Analysis shows state funding reductions decrease minority student enrollment, highlighting tuition and borrowing implications.

Dora Gicheva (2025) studied this question.

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