ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare

• 成果类型: Article
• 署名作者: Denning, Jeffrey T.; Marx, Benjamin M.; Turner, Lesley J.
• 署名单位: Brigham Young University; IZA Institute Labor Economics; University of Illinois System; University of Illinois Urbana-Champaign; University System of Maryland; University of Maryland College Park; National Bureau of Economic Research; Leibniz Association; Ifo Institut
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20180100
• 发表日期: 2019
• 页码: 193-224
• 关键词: college quality; returns; migration; aid

摘要

We estimate effects of the Pell Grant-the largest US federal grant for college students-using administrative data from Texas public colleges and a discontinuity in grant generosity for low-income students. Within four-year institutions, eligibility for additional grant aid significantly increases first-time students' degree completion and later earnings. Our estimated impacts on earnings alone are enough to fully recoup government expenditures within 10 years, suggesting that financial aid likely pays for itself several times over.