When financial aid is scarce: The challenge of allocating college aid where it is needed most

Drew M. Anderson

Journal of Public Economics, 2020, vol. 190, issue C

Abstract: Inequality in college completion by income is a persistent problem, often addressed through financial aid to lower-income students. Prior research has found mixed effects of financial aid, but research designs have not identified effects for the poorest students who may benefit the most. This study exploits an eligibility cutoff induced by first-come first-served allocation of funds in the state of Wisconsin. The analysis focuses on two-year technical colleges, where there was a large funding shortage affecting students at all income levels. I find positive effects of grant aid in reducing dropout and supporting degree completion, with larger positive effects for the poorest students.

Keywords: Financial aid; Community colleges; Inequality; Regression discontinuity (search for similar items in EconPapers)
JEL-codes: I22 I24 I28 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272720301171
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:190:y:2020:i:c:s0047272720301171

DOI: 10.1016/j.jpubeco.2020.104253

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().