Countering Moral Hazard in Higher Education: The Role of Performance Incentives in Need-Based Grants*

• 成果类型: Article
• 署名作者: Montalban, Jose
• 署名单位: Stockholm University
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueac062
• 发表日期: 2022
• 页码: 355-389
• 关键词: financial incentives; achievement evidence; College access; student aid; income; manipulation; GENDER; POLICY; school

摘要

Using a unique reform in the Spanish financial aid program, I estimate the impact of need-based grants on student achievement and dropout decisions under different intensities of academic requirements. Utilising comprehensive administrative data from a large university, I exploit sharp discontinuities in the grant eligibility formula to identify the effect of aid on student outcomes. I find that aid eligibility has no effect on student outcomes when the academic requirements are comparable with most existing national grant schemes worldwide. In contrast, I find that need-based grants have strong positive impacts on student performance and degree completion when they are combined with more demanding academic requirements.