Do in-state tuition benefits affect the enrollment of non-citizens? Evidence from universities in Texas

In 2001, the Texas state legislature passed House Bill 1403. With the passage of the law, Texas became the first state to offer in-state tuition rates at public universities for non-citizens (including illegal immigrants) who attended high school in the state for three years. As a result of the policy change, the cost of attending college at public universities in Texas fell dramatically for non-citizens. Using administrative data from five universities in Texas, we employ a quasi-experimental design to identify the effects of the policy change on the probability of enrollment at each of the universities. The results demonstrate a large and significant positive effect of lowering tuition on the enrollment of non-citizens at the University of Texas at Pan American and the University of Texas at San Antonio.