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Student Responses to Merit Scholarship Retention Rules

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  • Christopher M. Cornwell
  • Kyung Hee Lee
  • David B. Mustard

Abstract

A common justification for state-sponsored merit scholarships like Georgia’s HOPE program is to promote academic achievement. However, grade-based retention rules encourage other behavioral responses. Using longitudinal records of enrolled undergraduates at the University of Georgia between 1989 and 1997, we estimate the effects of HOPE on course-taking, treating nonresidents as a control group. First, we find that HOPE decreased full-load enrollments and increased course withdrawals among resident freshmen. Second, the scholarship’s influence on course-taking behavior is concentrated on students whose predicted freshmen GPAs place them on or below the scholarship-retention margin. Third, HOPE substantially increased summer school credits.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 40 (2005)
Issue (Month): 4 ()
Pages: 895-917

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Handle: RePEc:uwp:jhriss:v:40:y:2005:i:4:p:895-917

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Susan Dynarski, 2005. "Building the Stock of College-Educated Labor," NBER Working Papers 11604, National Bureau of Economic Research, Inc.
  2. Bai, Chong-en & Chi, Wei, 2011. "Determinants of undergraduate GPAs in China: college entrance examination scores, high school achievement, and admission route," MPRA Paper 31240, University Library of Munich, Germany.
  3. Maria De Paola & Vincenzo Scoppa & Rosanna Nistic�, 2012. "Monetary Incentives and Student Achievement in a Depressed Labor Market: Results from a Randomized Experiment," Journal of Human Capital, University of Chicago Press, vol. 6(1), pages 56 - 85.
  4. Sjoquist, David L. & Winters, John V., 2013. "The effects of HOPE on post-college retention in the Georgia workforce," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 479-490.
  5. Andersson, Christian & Johansson, Per, 2009. "Social stratification and out-of-school learning," Working Paper Series 2009:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  6. Sjoquist, David L. & Winters, John V., 2012. "State Merit-based Financial Aid Programs and College Attainment," IZA Discussion Papers 6801, Institute for the Study of Labor (IZA).
  7. Sjoquist, David L. & Winters, John V., 2013. "State Merit-Aid Programs and College Major: A Focus on STEM," IZA Discussion Papers 7381, Institute for the Study of Labor (IZA).
  8. Lovenheim, Michael F. & Owens, Emily G., 2014. "Does federal financial aid affect college enrollment? Evidence from drug offenders and the Higher Education Act of 1998," Journal of Urban Economics, Elsevier, vol. 81(C), pages 1-13.
  9. Rajashri Chakrabarti & Joydeep Roy, 2013. "Merit aid, student mobility, and the role of college selectivity," Staff Reports 641, Federal Reserve Bank of New York.
  10. Jensen, Elizabeth J. & Wu, Stephen, 2010. "Early decision and college performance," Economics of Education Review, Elsevier, vol. 29(4), pages 517-525, August.
  11. Michael F. Lovenheim & Emily G. Owens, 2013. "Does Federal Financial Aid Affect College Enrollment? Evidence from Drug Offenders and the Higher Education Act of 1998," NBER Working Papers 18749, National Bureau of Economic Research, Inc.
  12. Cornwell, Christopher & Lee, Kyung Hee & Mustard, David B., 2006. "The Effects of State-Sponsored Merit Scholarships on Course Selection and Major Choice in College," IZA Discussion Papers 1953, Institute for the Study of Labor (IZA).

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