Heterogeneous effects of merit scholarships: do program features matter?

Ning Jia

Applied Economics, 2019, vol. 51, issue 27, 2963-2979

Abstract: This paper examines the role of program features in determining the effectiveness of merit scholarships on educational outcomes using data from the 2009 to 2014 American Community Survey. Exploiting the variation in the timing of program adoption as well as program features across states, I find that leniency of academic requirements for initial eligibility largely contributes to program effects on associate’s degree completion, whereas generosity of scholarship amount significantly increases college attendance and bachelor’s degree completion. The estimates also indicate that lower requirements for scholarship renewal appear to positively affect the likelihood of completing a degree in science, technology, engineering, and mathematics fields (STEM). The findings suggest that leniency and generosity are important determinants of program effectiveness on educational outcomes. It is thus relevant to take program features into account when designing merit scholarships.

Date: 2019
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DOI: 10.1080/00036846.2018.1564017

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