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Crafting A Class: The Trade Off Between Merit Scholarships and Enrolling Lower-Income Students

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  • Ronald G. Ehrenberg
  • Liang Zhang
  • Jared Levin

Abstract

Our paper uses institutional-level panel data to testwhether an increase in the number of institutionally funded National Merit Scholarship (NMS) winners at an institution isassociated with a reduction in the number of Pell Grant recipients at the institution. We find that, other factors held constant, an increase in the share of institutionally funded NMS winners in an institution's first-year class is associated with a reduction in the share of Pell Grant recipients among the institution's undergraduate student body and that the magnitude of this relationship is larges at the institutions that enroll the greatest number of NMS students.

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File URL: http://www.nber.org/papers/w11437.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11437.

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Date of creation: Jun 2005
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Publication status: published as Ehrenberg, Ronald G., Liang Zhang, and Jared M. Levin. "Crafting a Class: The Trade-Off between Merit Scholarships and Enrolling Lower-Income Students." The Review of Higher Education 29, 2 (Winter 2006): 195-211.
Handle: RePEc:nbr:nberwo:11437

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  1. 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.
  2. Neil S. Seftor & NSarah E. Turner, 2002. "Back to School: Federal Student Aid Policy and Adult College Enrollment," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 336-352.
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