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The effect of grants on university drop-out rates: evidence on the Italian case

Francesca Modena (), Giulia Martina Tanzi () and Enrico Rettore ()
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Giulia Martina Tanzi: Bank of Italy

No 1193, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In this paper we measure the impact of need-based grants on university dropout rates in the first year, using student-level data from all Italian universities in the period 2003-2013. In Italy, some of the students eligible for grants do not receive them due to a lack of funds. We exploit this phenomenon to identify the causal effect of financial assistance. We find that need-based aid prevents students belonging to low-income families from dropping out from higher education; the estimated effect is sizeable. This evidence is robust to a variety of specifications and sample selection criteria.

Keywords: human capital; higher education; university dropout; student financial aid; treatment effect model; Italy (search for similar items in EconPapers)
JEL-codes: I22 I23 C21 C35 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-eur
Date: 2018-09
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1193_18

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