Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform

Helena Nielsen, Torben Sørensen (tosoerensen@econ.au.dk) and Christopher Taber (ctaber@ssc.wisc.edu)
Additional contact information
Torben Sørensen: Aarhus University
Christopher Taber: University of Wisconsin-Madison

No 3785, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper, we investigate the responsiveness of the demand for college to changes in student aid arising from a Danish reform. We separately identify the effect of aid from that of other observed and unobserved variables such as parental income. We exploit the combination of a kinked aid scheme and a reform of the student aid scheme to identify the effect of direct costs on college enrollment. To allow for heterogeneous responses due to borrowing constraints, we use detailed information on parents' assets. We find that enrollment is less responsive than found in other studies and that the presence of borrowing constraints only deters college enrollment to a minor extent.

Keywords: kink regression; reform; educational subsidies; college attendance (search for similar items in EconPapers)
JEL-codes: I22 J24 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2008-10
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 (15)

Published - published in: American Economic Journal: Economic Policy, 2010, 2 (2), 185-215

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Related works:
Chapter: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2010)
Journal Article: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2010)
Working Paper: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2008)
Working Paper: Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform (2008)
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