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The Enrollment Effects of Merit-Based Financial Aid: Evidence from Georgia's HOPE Program

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Author Info

  • Christopher Cornwell

    (University of Georgia)

  • David B. Mustard

    (University of Georgia and IZA)

  • Deepa J. Sridhar

    (Ashenfelter and Ashmore)

Abstract

Introduced in 1993, Georgia's HOPE Program sponsors a merit-based scholarship for students attending in-state colleges and a grant for those entering technical schools. There are no income restrictions. Comparing Georgia with other southeastern states over the 1988–97 period, HOPE increased freshmen enrollment by 5.9%, or 2,889 students per year, which amounts to only 15% of freshmen scholarship recipients. Four-year colleges account for most of the gain; a reduction in students leaving the state explains two-thirds of the 4-year-school effect attributable to freshmen who have recently graduated from high school. White and black enrollments increased because of HOPE.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 24 (2006)
Issue (Month): 4 (October)
Pages: 761-786

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Handle: RePEc:ucp:jlabec:v:24:y:2006:i:4:p:761-786

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Web page: http://www.journals.uchicago.edu/JOLE/

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