The Effects of Need-Based Financial Aid on Employment and Earnings: Experimental Evidence from the Fund for Wisconsin Scholars

Deven Carlson, Alex Schmidt, Sarah Souders and Barbara Wolfe

Journal of Human Resources, 2025, vol. 60, issue 2, 327-370

Abstract: We experimentally estimate the effects of a need-based financial aid offer on students’ annual in-state employment and earnings up to eight years after the initial offer. For students in four-year universities, we show the aid offer to reduce employment and earnings throughout the period we study but provide evidence of increased effort on coursework during students, in-college years. We examine the role of outstate migration and reduced loan debt in generating the negative effects in students’ post-college years. We find no significant effects of the aid offer on the labor market outcomes of individuals in two-year institutions.

JEL-codes: I22 I24 I26 J24 (search for similar items in EconPapers)
Date: 2025
Note: DOI: https://doi.org/10.3368/jhr.0121-11458R1
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:60:y:2025:i:2:p:327-370

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