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Merit Aid and Post-College Retention in the State

David Sjoquist and John Winters

No 1407, Economics Working Paper Series from Oklahoma State University, Department of Economics and Legal Studies in Business

Abstract: One goal of state merit-based financial aid programs is to increase the stock of college-educated labor in the state by retaining college-educated persons in the state after college.However, there has been surprisingly little research on whether state merit aid programs are effective at this goal. This paper investigates the effect of state merit aid programs on the post-college location of 2430 year olds. We use decennial census and American Community Survey micro data to consider post-college retention effects in the 25 states that implemented merit aid programs between 1991 and 2004. Our preferred specification implies that strong state merit aid programs on average increase the probability that a college attendee lives in his or her birth state during ages 24-30 by 2.76 percentage points. We also estimate the effect for individual states and find meaningful differences across states in the effect of merit aid programs on in-state post-college retention and explore explanations for these differences.

Keywords: college education; merit aid; migration; retention; brain drain (search for similar items in EconPapers)
JEL-codes: I23 J24 R23 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2013-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Merit aid and post-college retention in the state (2014) Downloads
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