Financial Aid and Higher Education Enrollment in Chile: A Government Policy Analysis
AbstractThis paper evaluates the impact of the Chilean government's nancial aid on college and vocational education enrollment. We found that there is an endogenous process in the application for nancial aid. To solve this problem we use a two-step procedure with instrumental variables (IV) and found that nancial aid increases the probability of students going to college by over 30%. In the case of vocational education, we found that being pre-selected for college nancial aid decreases the enrollment. However, vocational nancial aid increases that probability of enrollment. Therefore, students choose college education over vocational education when they have nancial aid for both. Theoretical conclusion and public policy recommendations are provided.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 23321.
Date of creation: 09 Jun 2010
Date of revision:
Financial aid; college enrollment; Chile; education; public policy.;
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-26 (All new papers)
- NEP-EDU-2010-06-26 (Education)
- NEP-LAB-2010-06-26 (Labour Economics)
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