Lauren Russell

Dr. Lauren Russell is an Associate Professor of Practice at the Fels Institute of Government at the University of Pennsylvania. She received her Ph.D. in Economics from MIT in 2017 and was previously a postdoctoral fellow at the Nelson A. Rockefeller Center for Public Policy and the Social Sciences at Dartmouth College where she managed the Class of 1964 Policy Research Shop from 2017 to 2019. Her research uses quasi-experimental methods to study issues of higher education finance, college pricing, and policies to address inequalities in education. Her research has been published in peer-reviewed journal articles, covered by national and state media, and quoted in Congressional testimony.

At Fels, Russell teaches public economics and program evaluation and data analysis to Masters of Public Administration and Executive Masters of Public Administration students. She also manages Fels Lab, a research enterprise that connects Fels students with projects that serve the real-world needs of nonprofit organizations and government entities.

Publications

“Price Effects of Non-Profit College and University Mergers” (Accepted at Review of Economics and Statistics) [Online Appendix Materials] Media Coverage: Stateline; FutureEd ABSTRACT: Non-profit colleges and universities have merged across the US, citing economies of scale and scope. Yet, whether these institutions raise prices as a result of mergers has not been empirically assessed. Using an ex post merger evaluation approach, I estimate that the average merger between 2000 and 2015 increased tuition and fees by 5-7% relative to non-merging institutions in the same state and sector (public or non-profit). Effects on net prices are estimated imprecisely, but the results are suggestive that non-profit colleges use mergers to increase price discrimination.

Russell, Lauren. 2019. “Better Outcomes Without Increased Costs? Effects of Georgia’s University System Consolidations“, Economics of Education Review, 68: 122-135. Media Coverage: Stateline; FutureEd; Chronicle of Higher Education; Martin Center; AJC [Pre-Publication Manuscript] ABSTRACT: Declining state appropriations for higher education have prompted consolidations within numerous public university systems. Using administrative data from the University System of Georgia, I investigate the effects of recent consolidations on educational quality and efficiency. Comparing cohorts matriculating after consolidations to similar cohorts at non-consolidated institutions reveals that consolidation increases retention rates and the fraction of students graduating on-time with four-year degrees. Spending data and conversations with USG administrators suggest that increased spending on academic support (advising), made possible by economies of scale in student services, are likely responsible for the gains.

Russell, Lauren. 2017. “Can learning communities boost the success of women and minorities in STEM? Evidence from the Massachusetts Institute of Technology.” Economics of Education Review, 61: 98-111. ABSTRACT: I study the impacts of a freshman learning community at MIT called the Experimental Study Group (ESG) which has features aligning with the National Academies’ recommendations for expanding the representation and success of women and minorities in STEM fields. I exploit the lottery-based admission system to estimate causal treatment effects. I find no statistically significant effects on academic outcomes for ESG enrollees generally, but women who participate in the program have higher GPAs and complete more credits of coursework. Minority students are more likely to major in math, computer science, or electrical engineering after participating in the program. Though quite noisy, the results are suggestive that women and minorities in STEM may benefit from learning communities.

Research Papers

“Do College Applicants Respond to Changes in Sticker Prices Even When They Don’t Matter?” (with Phillip Levine and Jennifer Ma) *Draft available upon request ABSTRACT: Do students respond to sticker prices or actual out-of-pocket prices when applying to college? These costs differ for students eligible for financial aid. If students do not understand this, they may avoid some colleges because of the perceived high cost. We test for this form of “sticker shock” using data on SAT scores sent, as a proxy for applications, to state flagship institutions for students entering college in 2006-2013. Some public flagships guarantee financial aid will meet full financial need. Sticker price increases at those schools would not affect the actual cost after factoring in financial aid and should not affect decisions for those eligible for aid. We exploit the large and variable increases in sticker prices at public flagships during the financial crisis generated from state budget shortfalls. We also control for local labor market conditions to abstract from the recession’s impact on individual educational decisions. We find evidence supporting the existence of sticker shock – students unaffected by sticker price increases still apply less often. Using data from the National Student Clearinghouse, we also find that price increases largely affect college-going behavior through their effects at the application stage, not the enrollment stage, of the college search process.

“Can Federal Student Loan Forgiveness Help Retain Teachers?” (Under Revision) ABSTRACT: I study the impact of the U.S. Department of Education’s Teacher Loan Forgiveness Program which provides up to $17,500 in federal loan forgiveness for teachers completing five years at a low-income school. By providing financial incentives for teachers to stay for at least five years, this program has the potential to reduce teacher turnover at low income schools and improve student achievement since experienced teachers generate larger gains for students. Estimates from a dynamic RD design using school-level data from four large states reveal a precise zero for the effect of the program on teacher retention rates and teacher characteristics.

Research in Progress

“Pricing in the Private Student Loan Market” (with Christa Gibbs) ABSTRACT: The private student loan market plays an important role in financing higher education yet has been rarely studied. We analyze student-loan level data from the Consumer Financial Protection Bureau which covers all private student loans made by 9 major lenders from 2005 to 2011. Because our dataset of over 5 million college loans contains much richer information on underwriting criteria than has been previously available and identifies students’ schools, we are able to investigate several policy-relevant questions. First, is there discrimination in the private student loan market (a practice forbidden in federal loan origination but currently legal for private student loans)? Second, what is the impact of private student loans on college completion? And third, does the use of preferred lender lists promote or lessen competition, and what is the effect on prices students pay?