Testing Means-Tested Aid
Richard Murphy () and
CEP Discussion Papers from Centre for Economic Performance, LSE
Inequalities do not end once students enter higher education. Yet, the majority of papers on the effectiveness of higher education aid examine its impact on college enrolment. In this paper, we provide evidence on the causal impact of means-tested but otherwise unconditional financial aid on the outcomes of students who have already enrolled in college. To do so, we exploit a unique non-salient financial aid program which varies both across and within institutions, and for which eligibility is a highly non-linear function of parental income. Using student-level administrative data collected from 9 English universities, we study the effects of aid receipt on college completion rates, annual course scores, and degree quality. Our findings suggest that each £1,000 of financial aid awarded increases the chances of gaining a good degree by around 3.7 percentage points, driven by increases in annual rates of completion and course scores.
Keywords: higher education; financial aid; degree completion (search for similar items in EconPapers)
JEL-codes: I22 I23 I28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Working Paper: Testing Means-Tested Aid (2016)
Working Paper: Testing means-tested aid (2015)
Working Paper: Testing Means-Tested Aid? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1396
Access Statistics for this paper
More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().