Tuition levels at Ontario universities have risen along with the value of merit-based entry scholarships provided by the nineteen institutions in this relatively closed system. We use data on entering students from 1994 through 2005 and find that merit awards have at most a small effect on a universityÕs share of academically strong registrants. Such aid, however, is strongly associated with an increase in the ratio of students from low-income neighborhoods to students from high-income neighborhoods. Finally, although more advantaged students are more likely to attend university, merit aid is not strongly skewed towards the more advantaged conditional upon registration.
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Dynarski, Susan, 2004.
"The New Merit Aid,"
Working Paper Series
rwp04-009, Harvard University, John F. Kennedy School of Government.
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Susan Dynarski, 2004.
"The New Merit Aid,"
NBER Chapters,
in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 63-100
National Bureau of Economic Research, Inc.
[Downloadable!]