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

Jeffrey Denning, Benjamin Marx and Lesley Turner

No 11792, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We estimate effects of the Pell Grant - the largest U.S. 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.

Keywords: Pell; Grant (search for similar items in EconPapers)
JEL-codes: H52 I22 I26 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2018-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: American Economic Journal: Applied Economics, 2019, 11 (3), 193-224

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Related works:
Journal Article: ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare (2019)
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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