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

Jeffrey Denning, Benjamin Marx and Lesley Turner

American Economic Journal: Applied Economics, 2019, vol. 11, issue 3, 193-224

Abstract: 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.

JEL-codes: H75 I22 I23 I26 J24 J31 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/app.20180100
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Citations: View citations in EconPapers (54)

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Related works:
Working Paper: ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare (2018)
Working Paper: ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare (2017)
Working Paper: ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare (2017)
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