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The role of merit-based and need-based financial aid: Evidence from Trieste University's grant programs

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  • Graziosi, Grazia
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    Abstract

    The aim of this article is to investigate whether the Italian University grants are an effective tool to prevent student drop-out and to favor the degree attainment, both for merit and need-based financial aids. The survey units are Italian students enrolled on a degree course in Chemistry, Physics and Mathematics from 2002/03 until 2007/08 in the University of Trieste. On the one hand, the Regional Agency for the Right to Education offers some grants every year to eligible students from low-income families (rarely related to merit). On the other hand, Fonda Foundation offers some (only) merit-based grants to the best students enrolled in Chemistry, Physics and Mathematics degree courses. In order to estimate the causal effect of receiving a grant, we follow the counterfactual analysis and we match treated and control units using Genetic matching and Coarsened Exact Matching. The results suggest that the income-based financial aids have a positive impact to prevent drop-out at 2nd year, but a nonsignificant effect on graduation time, whereas the merit-based scholarships increase the probability to achieve the degree in the time alloted.

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    File URL: http://hdl.handle.net/10077/8517
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    Bibliographic Info

    Paper provided by DEAMS - Dipartimento di Scienze Economiche, Aziendali, Matematiche e Statistiche "Bruno de Finetti" in its series Working Papers DEAMS with number 11.

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    Date of creation: Mar 2013
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    Handle: RePEc:tre:wpaper:11

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    Postal: Piazzale Europa 1 - 34127 TRIESTE
    Phone: 040 676 7048
    Fax: 040 54637
    Web page: http://www.deams.units.it/
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    Related research

    Keywords: Financial higher education; Evaluation of university grants; Conterfactual analysis;

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