Advanced Search
MyIDEAS: Login

Merit Aid, College Quality and College Completion: Massachusetts' Adams Scholarship as an In-Kind Subsidy

Contents:

Author Info

  • Cohodes, Sarah

    (Harvard University)

  • Goodman, Joshua

    (Harvard University)

Abstract

We analyze a Massachusetts merit aid program in which high-scoring students received tuition waivers at in-state public colleges with lower graduation rates than available alternative colleges. A regression discontinuity design comparing students just above and below the eligibility threshold finds that students are remarkably willing to forgo college quality for relatively little money and that marginal students lowered their college completion rates by using the scholarship. These results imply that college quality has a substantial impact on college completion rates and that students likely do not understand this fact well. The theoretical prediction that in-kind subsidies of public institutions can reduce consumption of the subsidized good is shown to be empirically important.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: https://research.hks.harvard.edu/publications/getFile.aspx?Id=920
Download Restriction: no

Bibliographic Info

Paper provided by Harvard University, John F. Kennedy School of Government in its series Working Paper Series with number rwp13-005.

as in new window
Length:
Date of creation: Mar 2013
Date of revision:
Handle: RePEc:ecl:harjfk:rwp13-005

Contact details of provider:
Postal: 79 JFK Street, Cambridge, MA 02138
Fax: 617-496-2554
Web page: http://www.ksg.harvard.edu/research/working_papers/index.htm
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Long, Mark C., 2008. "College quality and early adult outcomes," Economics of Education Review, Elsevier, vol. 27(5), pages 588-602, October.
  2. Guido Imbens & Karthik Kalyanaraman, 2010. "Optimal bandwidth choice for the regression discontinuity estimator," CeMMAP working papers CWP05/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. Dynarski, Susan, 2005. "Building the Stock of College-Educated Labor," Working Paper Series rwp05-050, Harvard University, John F. Kennedy School of Government.
  4. Atila Abdulkadiroglu & Joshua D. Angrist & Parag A. Pathak, 2011. "The Elite Illusion: Achievement Effects at Boston and New York Exam Schools," NBER Working Papers 17264, National Bureau of Economic Research, Inc.
  5. John Bound & Michael Lovenheim & Sarah Turner, 2009. "Why Have College Completion Rates Declined? An Analysis of Changing Student Preparation and Collegiate Resources," NBER Working Papers 15566, National Bureau of Economic Research, Inc.
  6. Loury, Linda Datcher & Garman, David, 1995. "College Selectivity and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 289-308, April.
  7. McCrary, Justin, 2008. "Manipulation of the running variable in the regression discontinuity design: A density test," Journal of Econometrics, Elsevier, vol. 142(2), pages 698-714, February.
  8. Philippe Belley & Lance Lochner, 2007. "The Changing Role of Family Income and Ability in Determining Educational Achievement," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 37-89.
  9. Stacy Dale & Alan B. Krueger, 2011. "Estimating the Return to College Selectivity Over the Career Using Administrative Earning Data," Mathematica Policy Research Reports 6922, Mathematica Policy Research.
  10. Stacy Berg Dale & Alan B. Krueger, 1999. "Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables," NBER Working Papers 7322, National Bureau of Economic Research, Inc.
  11. David Deming & Susan Dynarski, 2010. "College Aid," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources are Limited, pages 283-302 National Bureau of Economic Research, Inc.
  12. Maria D. Fitzpatrick & Damon Jones, 2012. "Higher Education, Merit-Based Scholarships and Post-Baccalaureate Migration," NBER Working Papers 18530, National Bureau of Economic Research, Inc.
  13. Lang, Kevin & Siniver, Erez, 2011. "Why is an elite undergraduate education valuable? Evidence from Israel," Labour Economics, Elsevier, vol. 18(6), pages 767-777.
  14. Lockwood Reynolds, C., 2012. "Where to attend? Estimating the effects of beginning college at a two-year institution," Economics of Education Review, Elsevier, vol. 31(4), pages 345-362.
  15. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  16. Calcagno, Juan Carlos & Bailey, Thomas & Jenkins, Davis & Kienzl, Gregory & Leinbach, Timothy, 2008. "Community college student success: What institutional characteristics make a difference?," Economics of Education Review, Elsevier, vol. 27(6), pages 632-645, December.
  17. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
  18. Eric P. Bettinger & Bridget Terry Long & Philip Oreopoulos & Lisa Sanbonmatsu, 2012. "The Role of Application Assistance and Information in College Decisions: Results from the H&R Block Fafsa Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 127(3), pages 1205-1242.
  19. Joshua Goodman, 2007. "Who merits financial aid? Massachusetts? Adams scholarship," Discussion Papers 0607-13, Columbia University, Department of Economics.
  20. Sa A. Bui & Steven G. Craig & Scott A. Imberman, 2011. "Is Gifted Education a Bright Idea? Assessing the Impact of Gifted and Talented Programs on Achievement," NBER Working Papers 17089, National Bureau of Economic Research, Inc.
  21. Peltzman, Sam, 1973. "The Effect of Government Subsidies-in-Kind on Private Expenditures: The Case of Higher Education," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 1-27, Jan.-Feb..
  22. Ganderton, Philip T., 1992. "The effect of subsidies in kind on the choice of a college," Journal of Public Economics, Elsevier, vol. 48(3), pages 269-292, August.
  23. Bound, John & Turner, Sarah, 2007. "Cohort crowding: How resources affect collegiate attainment," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 877-899, June.
  24. Arnaud Chevalier & Gavan Conlon, 2003. "Does it pay to attend a prestigious university?," Working Papers 200320, School Of Economics, University College Dublin.
  25. Stephanie Riegg Cellini, 2009. "Crowded Colleges and College Crowd-Out: The Impact of Public Subsidies on the Two-Year College Market," American Economic Journal: Economic Policy, American Economic Association, vol. 1(2), pages 1-30, August.
  26. Christopher Avery & Caroline M. Hoxby, 2003. "Do and Should Financial Aid Packages Affect Students' College Choices?," NBER Working Papers 9482, National Bureau of Economic Research, Inc.
  27. Jeffrey R. Brown & Amy Finkelstein, 2008. "The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market," American Economic Review, American Economic Association, vol. 98(3), pages 1083-1102, June.
  28. Papay, John P. & Willett, John B. & Murnane, Richard J., 2011. "Extending the regression-discontinuity approach to multiple assignment variables," Journal of Econometrics, Elsevier, vol. 161(2), pages 203-207, April.
  29. Will Dobbie & Roland G. Fryer, Jr., 2011. "Exam High Schools and Academic Achievement: Evidence from New York City," NBER Working Papers 17286, National Bureau of Economic Research, Inc.
  30. Sandy, Jonathan & Gonzalez, Arturo & Hilmer, Michael J., 2006. "Alternative paths to college completion: Effect of attending a 2-year school on the probability of completing a 4-year degree," Economics of Education Review, Elsevier, vol. 25(5), pages 463-471, October.
  31. David M. Cutler & Jonathan Gruber, 1995. "Does Public Insurance Crowd Out Private Insurance?," NBER Working Papers 5082, National Bureau of Economic Research, Inc.
  32. Leigh, D. E. & Gill, A. M., 2003. "Do community colleges really divert students from earning bachelor's degrees?," Economics of Education Review, Elsevier, vol. 22(1), pages 23-30, February.
  33. Thomas J. Kane, 2007. "Evaluating the Impact of the D.C. Tuition Assistance Grant Program," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
  34. Kane, Thomas J., 2006. "Public Intervention in Post-Secondary Education," Handbook of the Economics of Education, Elsevier.
  35. Daphna Bassok & Maria Fitzpatrick & Susanna Loeb, 2012. "Does State Preschool Crowd-Out Private Provision? The Impact of Universal Preschool on the Childcare Sector in Oklahoma and Georgia," NBER Working Papers 18605, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Rajashri Chakrabarti & Joydeep Roy, 2013. "Merit aid, student mobility, and the role of college selectivity," Staff Reports 641, Federal Reserve Bank of New York.
  2. Cory Koedel & Peter Arcidiacono, 2012. "Race and College Success: Evidence from Missouri," Working Papers 1212, Department of Economics, University of Missouri, revised 15 Jul 2013.
  3. Katja Maria Kaufmann & Matthias Messner & Alex Solis, 2013. "Returns to Elite Higher Education in the Marriage Market: Evidence from Chile," Working Papers 489, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  4. Joshua D. Angrist & Sarah R. Cohodes & Susan M. Dynarski & Parag A. Pathak & Christopher R. Walters, 2013. "Stand and Deliver: Effects of Boston's Charter High Schools on College Preparation, Entry, and Choice," NBER Working Papers 19275, National Bureau of Economic Research, Inc.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ecl:harjfk:rwp13-005. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.