How You Pay Affects How You Do: Financial Aid Type and Student Performance in College

Cappelli, Peter; Won, Shinjae

doi:10.3386/w22604

Cited by 9 publications

(8 citation statements)

References 34 publications

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“…The amount of funding available for these grants thus differs among regions, years and also among universities within regions. There are remarkable differences between geographical areas 7 Other works have focused on different student outcomes: grades (Cappelli and Won (2016)) and time taken to complete a degree (Glocker (2011);Garibaldi et al (2012); Denning et al (2017); Fricke (2018)).…”

Section: Grant Assignment Rulementioning

confidence: 99%

The Effect of Grants on University Drop-Out Rates: Evidence on the Italian Case

2018

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.In this paper we evaluate the impact of need-based grants on university drop-out rates in the first year of enrollment, using student-level administrative data from all Italian universities in the period 2003-2013. We exploit the fact that not all eligible students receive financial aid due to limited resources to generate a treatment and a control group. Using this partition, we estimate the average treatment effect, i.e. the average effect on low income students, controlling for a set of observable characteristics by running regressions on blocks defined on the propensity score. Results point towards a sizeable effect of grants in reducing dropping out from higher education: around one third of these students would have left university in the first year in absence of the grants. This evidence is robust to a variety of specifications and sample selection criteria. JEL Classification:I22, I23, C21, C35

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Section: Grant Assignment Rulementioning

confidence: 99%

The Effect of Grants on University Drop-Out Rates: Evidence on the Italian Case

2018

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“…Scott-Clayton (2011) assesses the impact of a program in West Virginia that offered free tuition and fees to college students who maintained a minimum grade and course load and finds positive effects on cumulative GPA and credits earned. Finally Cappelli and Won (2016) show that students receiving need-based grants independently of performance perform better than those without aid.…”

Section: Introductionmentioning

confidence: 90%

Financial Aid and Student Performance in College: Evidence from Brazil

Lepine

2019

Brazilian Review of Econometrics

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This paper studies the effects of a government scholarship program for low-income college students in Brazil, the Prouni. In order to deal with selection effects, I use propensity score matching based on observable student characteristics and a proxy for previous student performance. The results are robust across different specifications, and suggest that students who received a scholarship perform better than comparable students and take less time to reach the final year of college. These effects are higher for students with full scholarships than for students with partial scholarships, and seem to be partially driven by a decrease in the proportion of students who work and an increase in time spent studying.

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“…The amount of funding available for these grants thus differs among regions, years and also among universities within regions. There are remarkable differences between geographical areas 7 Other works have focused on different student outcomes: grades (Cappelli and Won (2016)) and time taken to complete a degree (Glocker (2011); Garibaldi et al (2012); Denning et al (2017); Fricke (2018)).…”

Section: Grant Assignment Rulementioning

confidence: 99%

The Effect of Grants on University Dropout Rates: Evidence from the Italian Case

Modena

Rettore

Tanzi

2020

Journal of Human Capital

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Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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How You Pay Affects How You Do: Financial Aid Type and Student Performance in College

Cited by 9 publications

References 34 publications

The Effect of Grants on University Drop-Out Rates: Evidence on the Italian Case

The Effect of Grants on University Drop-Out Rates: Evidence on the Italian Case

Financial Aid and Student Performance in College: Evidence from Brazil

The Effect of Grants on University Dropout Rates: Evidence from the Italian Case

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