A major concern with recent tuition increases is whether access to public higher education has been affected, especially for students who historically have relied on public colleges. While microeconomic theory causes one to expect a downward-sloping demand curve for higher education (as tuition increases, enrollments would decrease, ceteris parabus), the impact of tuition changes may vary depending upon other factors, such as changes in the college-high school earnings gap over time. In addition, those with different characteristics, such as white versus minority students, or students with varying levels of income, may react differently to tuition changes. In my qualifying paper, I propose to address the relationship between tuition and access to public higher education in the U.S. through a review of the literature.

This topic is important for a number of reasons. If higher tuition does restrict access to public institutions by those most dependent upon them, minority and lower income students may have no other options for obtaining a college degree. As over 80% of undergraduates today attend public institutions, maintaining access to these schools is critical. Decreasing enrollment rates of minority students (relative to white students) may be one indicator that these students are having trouble affording college. In addition, a baccalaureate education is critical to earning a decent living today. A recent Census Bureau publication (Kominski and Sutterlin, 1992) shows that the average earnings of workers over 18 with a bachelor's degree are almost twice those possessing only a high school diploma. The difference is even greater for blacks. Restricting access to higher education may serve to exacerbate this gap in earnings.

Financial aid programs administered by federal and state governments, as well as institutions, have existed to equalize educational opportunity for underrepresented groups. Financial aid acts as a price discount, lowering the net tuition paid by recipients. When addressing the relationship between tuition and access to higher education, then, it is critical also to examine the impact of financial aid on that relationship.

I propose to examine and analyze the literature related to these relationships. The specific research questions I will address are:

• 1. What effect do tuition increases have on enrollments in public higher education?
• 2. Does the existence and/or magnitude of financial aid awards affect enrollment?
• 3. Do these tuition and financial aid effects differ for:
  a) Students of different races?
  b) Students of different incomes?
  c) Enrollment in community colleges versus 4-year institutions?