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State Merit-based Financial Aid Programs and College Attainment

Author

Listed:
  • Sjoquist, David L.

    (Georgia State University)

  • Winters, John V.

    (Iowa State University)

Abstract
We examine the effects of recently adopted state merit-based financial aid programs on college attendance and degree completion. Our primary analysis uses microdata from the 2000 Census and 2001-2010 American Community Survey to estimate the effects of merit programs on educational outcomes for 25 merit aid adopting states. We also utilize administrative data for the University System of Georgia to look more in depth at the effects of the HOPE Scholarship on degree completion in Georgia. We find strong consistent evidence that state merit aid programs have no meaningfully positive effect on college completion. Coefficient estimates for our preferred specifications are small and statistically insignificant. State merit aid programs do not appear to increase the percentage of young people with a college education.

Suggested Citation

  • Sjoquist, David L. & Winters, John V., 2012. "State Merit-based Financial Aid Programs and College Attainment," IZA Discussion Papers 6801, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6801
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    More about this item

    Keywords

    degree completion; college attainment; HOPE; merit aid; higher education;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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