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As a result of decreases in support from the state governments, changes in the higher education market, and changes in student characteristics, four-year, public universities in the United States have turned to student enrollment management and in particular retention of Newly Entering Freshman (NEF) students to stabilize their budgets. Using panel data analysis, we attempt to explain variations in the retention of NEF across four-year, public universities; we find that, ceteris paribus, universities located in cities with better employment conditions have lower retention rates. By contrast, prior studies on retention across institutions had not included the impact of local economic conditions.
