Money for nothing: estimating the impact of student aid on participation in Higher Education
AbstractUnderstanding how finance policy can affect higher education is important for understanding how governments can promote human capital accumulation. Yet there is a severe lack of evidence on the effectiveness of student aid on HE participation outside of the US, and none at all for the UK. This paper exploits a reform that took place in the UK in 2004, when maintenance grants were re-introduced for students from low income families, having been abolished since 1999. This reform occurred in isolation of any other policy changes, and did not affect students from relatively better off families, making them a potential control group. We use a difference in difference framework to estimate its effects on degree participation. We find a positive impact of maintenance grants on degree participation, with a Â£1,000 increase in grants leading to a 3.95ppt increase in participation. This finding is in line with US studies.
Download InfoIf 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.
Bibliographic InfoPaper provided by Department of Quantitative Social Science - Institute of Education, University of London in its series DoQSS Working Papers with number 13-04.
Date of creation: 02 Apr 2013
Date of revision:
Contact details of provider:
Postal: Department of Quantitative Social Science. 20 Bedford Way London WC1H 0AL
Phone: (44) (0)20 7612 6654. Eliminate (44) and add (0) if calling from inside the UK. Add (44) and eliminate (0) if calling from abroad.
Fax: (44) (0)20 7612 6686
Web page: http://www.ioe.ac.uk/study/departments/369.html
More information through EDIRC
higher education participation; higher education funding policies; maintenance grants; difference in differences;
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
This paper has been announced in the following NEP Reports:
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.:
- Lorraine Dearden & Emla Fitzsimons & Alissa Goodman & Greg Kaplan, 2008.
"Higher Education Funding Reforms in England: The Distributional Effects and the Shifting Balance of Costs,"
Royal Economic Society, vol. 118(526), pages F100-F125, 02.
- Lorraine Dearden & Emla Fitzsimons & Alissa Goodman & Greg Kaplan, 2007. "Higher education funding reforms in England: the distributional effects and the shifting balance of costs," IFS Working Papers W07/18, Institute for Fiscal Studies.
- Hemelt, Steven W. & Marcotte, Dave E., 2008. "Rising Tuition and Enrollment in Public Higher Education," IZA Discussion Papers 3827, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lindsey Macmillan).
If references are entirely missing, you can add them using this form.