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The Effects of Financial Aid in High School on Academic and Labor Market Outcomes: A Quasi-Experimental Study

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Author Info
Maria Knoth Humlum
Rune Majlund Vejlin () (School of Economics and Management, University of Aarhus, Denmark)

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Abstract

We investigate the effects of financial aid on student employment and academic outcomes in high school. We exploit administrative differences in the amount of financial aid received based on timing of birth to identify the causal effects of interest. Specifically, individuals born early in a quarter receive less financial aid than comparable individuals born late in the previous quarter. We find that receiving less aid induces individuals to work more during high school. However, we do not find any evidence that receiving less financial aid and thereby working more is associated with any adverse outcomes, such as a lower high school grade point average.

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Publisher Info
Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2009-02.

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Length: 43
Date of creation: 28 Jan 2009
Date of revision:
Handle: RePEc:aah:aarhec:2009-02

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Web page: http://www.econ.au.dk/afn/

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Related research
Keywords: student grants; high school employment; regression discontinuity;

Find related papers by JEL classification:
I28 - Health, Education, and Welfare - - Education - - - Government Policy
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
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  1. Lemieux, Thomas & Milligan, Kevin, 2008. "Incentive effects of social assistance: A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 807-828, February. [Downloadable!] (restricted)
    Other versions:
  2. Jens Ludwig & Douglas L. Miller, 2005. "Does Head Start Improve Children's Life Chances? Evidence from a Regression Discontinuity Design," NBER Working Papers 11702, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1931-1958, August. [Downloadable!] (restricted)
  4. Todd R. Stinebrickner & Ralph Stinebrickner, 2007. "The Effect of Credit Constraints on the College Drop-Out Decision A Direct Approach Using a New Panel Study," NBER Working Papers 13340, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Donna S. Rothstein, 2007. "High School Employment and Youths' Academic Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 42(1). [Downloadable!] (restricted)
  6. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, Elsevier. [Downloadable!] (restricted)
    Other versions:
  7. Kasey Buckles & Daniel M. Hungerman, 2008. "Season of Birth and Later Outcomes: Old Questions, New Answers," NBER Working Papers 14573, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Susan M. Dynarski, 2003. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," American Economic Review, American Economic Association, vol. 93(1), pages 279-288, March. [Downloadable!]
    Other versions:
  9. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
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