Testing Means-Tested Aid

• 成果类型: Article; Early Access
• 署名作者: Murphy, Richard; Wyness, Gill
• 署名单位: National Bureau of Economic Research; University of Texas System; University of Texas Austin; University of London; London School Economics & Political Science; University of London; University College London; UCL Institute of Education; University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/719995
• 发表日期: 2023
• 关键词: financial-aid; higher-education; borrowing constraints; credit constraints; college enrollment; IMPACT; manipulation; SCHOLARSHIP; persistence; graduation

摘要

We estimate the effect of an unexpected institutional financial aid (IFA) award on student outcomes using administrative data collected from nine universities, exploiting variation in IFA schedules within and across university-entry cohorts. Each 1,000 pound of IFA during the first year of college increases the chances of completing that year by 1.4 percentage points, improves test scores by 0.059 standard deviations, and increases the chances of graduating with a good degree by 3.4 percentage points. We find that high-ability and low-income students benefit the most and calculate outcome-maximizing and cost-minimizing IFA schedules for each university.