Researcher(s)
- Martin Jacard Falck, Economics, University of Delaware
Faculty Mentor(s)
- Thomas Bridges, Economics, University of Delaware
Abstract
This research compares the socioeconomic background of college students in fraternities vs those who aren’t. Using data from the Panel Study of Income Dynamics (PSID) and its Transition into Adulthood Supplement (TAS), we compare family income and net worth between students who participate in Greek life and those who do not. After adjusting for inflation and transforming distributions using natural logarithms, we find that fraternity-affiliated students come from families with significantly higher income and wealth levels. On average, Greek participants report family net worth over 60% higher and family incomes over 40% higher than their non-Greek peers. These gaps are shown across kernel density estimates, violin, and box plots, and are proven through the use of regression and t-test analysis. We then contextualize these findings within the institutional framework of Greek life. Fraternities benefit from federal tax exemption under their IRC 501(c)(7) designation, under which they operate as nonprofit “social clubs” while avoiding taxation on dues and property. Simultaneously, numerous studies have documented the public health risks associated with fraternity membership, including increased rates of sexual assault, substance abuse, epidemiologic outbreaks, and hazing. This creates a situation in which highly privileged students receive access to both institutional resources and public subsidies, despite generating social externalities and restricting membership in practice. Taken together, this work suggests that Greek life explicitly or implicitly discriminates based on socioeconomic status, and is protected by public policy. By analyzing data within a broader institutional framework, this research contributes to the works on educational inequality and calls for reconsideration of how fraternities are regulated, subsidized, and integrated into university systems.