Money for nothing: estimating the impact of student aid on participation in Higher Education

Lorraine Dearden (l.dearden@ucl.ac.uk), Emla Fitzsimons (emla_f@ifs.org.uk) and Gill Wyness
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Emla Fitzsimons: Institute of Fiscal Studies

No 13-04, DoQSS Working Papers from Quantitative Social Science - UCL Social Research Institute, University College London

Abstract: Understanding how finance policy can affect higher education is important for understanding how governments can promote human capital accumulation. Yet there is a severe lack of evidence on the effectiveness of student aid on HE participation outside of the US, and none at all for the UK. This paper exploits a reform that took place in the UK in 2004, when maintenance grants were re-introduced for students from low income families, having been abolished since 1999. This reform occurred in isolation of any other policy changes, and did not affect students from relatively better off families, making them a potential control group. We use a difference in difference framework to estimate its effects on degree participation. We find a positive impact of maintenance grants on degree participation, with a £1,000 increase in grants leading to a 3.95ppt increase in participation. This finding is in line with US studies.

Keywords: higher education participation; higher education funding policies; maintenance grants; difference in differences (search for similar items in EconPapers)
JEL-codes: I21 I22 I28 (search for similar items in EconPapers)
Date: 2013-04-02
New Economics Papers: this item is included in nep-edu
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Money for nothing: Estimating the impact of student aid on participation in higher education (2014)
Working Paper: Money for nothing: estimating the impact of student aid on participation in higher education (2014)
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