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Abstract
This study examines the differential impact of state appropriations on STEM and non-STEM degree completion at U.S. public four-year institutions. Using a panel dataset from 2003 to 2019 and a Bartik-style instrumental variables approach, I find that state funding disproportionately affects STEM degree completion, with little to no impact on Non-STEM degrees. A 10% increase in state appropriations leads to a 3.4% increase in STEM degrees conferred, primarily four years after the funding change. This effect is concentrated among male students, science STEM majors, and non-selective institutions. Increased state support leads to higher institutional spending, and more STEM programs–factors that impact STEM degree completion more than non-STEM fields.
Number of STEM Bachelor Degrees vs. Budget Shock
