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Early commitment on financial aid and college decision making of poor students: Evidence from a randomized evaluation in rural China

Author

Listed:
  • Liu, Chengfang
  • Zhang, Linxiu
  • Luo, Renfu
  • Wang, Xiaobing
  • Rozelle, Scott
  • Sharbono, Brian
  • Adams, Jennifer
  • Shi, Yaojiang
  • Yue, Ai
  • Li, Hongbin
  • Glauben, Thomas

Abstract

Many educational systems have struggled with the question about how best to give out financial aid. In particular, if students do not know the amount of financial aid that they can receive before they make a decision about where to go to college and what major to study, it may distort their decision. This study utilizes an experiment (implemented by the authors as a Randomized Control Trial) to analyze whether or not an alternative way of providing financial aid--by providing an early commitment on financial aid during the student's senior year of high school instead of after entering college--affects the college decision making of poor students in rural China. We find that if early commitments are made early enough; and they are large enough, students will make less distorting college decisions.

Suggested Citation

  • Liu, Chengfang & Zhang, Linxiu & Luo, Renfu & Wang, Xiaobing & Rozelle, Scott & Sharbono, Brian & Adams, Jennifer & Shi, Yaojiang & Yue, Ai & Li, Hongbin & Glauben, Thomas, 2011. "Early commitment on financial aid and college decision making of poor students: Evidence from a randomized evaluation in rural China," Economics of Education Review, Elsevier, vol. 30(4), pages 627-640, August.
  • Handle: RePEc:eee:ecoedu:v:30:y:2011:i:4:p:627-640
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    References listed on IDEAS

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    1. Katharine G. Abraham & Melissa A. Clark, 2006. "Financial Aid and Students’ College Decisions: Evidence from the District of Columbia Tuition Assistance Grant Program," Journal of Human Resources, University of Wisconsin Press, vol. 41(3).
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    8. Hongbin Li & Pak Wai Liu & Ning Ma & Junsen Zhang, 2005. "Does Education Pay in Urban China? Estimating Returns to Education Using Twins," Discussion Papers 00013, Chinese University of Hong Kong, Department of Economics.
    9. Olivia, Susan & Gibson, John & Rozelle, Scott & Huang, Jikun & Deng, Xiangzheng, 2011. "Mapping poverty in rural China: how much does the environment matter?," Environment and Development Economics, Cambridge University Press, vol. 16(2), pages 129-153, April.
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    Cited by:

    1. Linxiu Zhang & Hongmei Yi & Renfu Luo & Changfang Liu & Scott Rozelle, 2013. "The human capital roots of the middle income trap: the case of China," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 151-162, November.
    2. Huang, Wei & Li, Fan & Liao, Xiaowei & Hu, Pingping, 2018. "More money, better performance? The effects of student loans and need-based grants in China's higher education," China Economic Review, Elsevier, vol. 51(C), pages 208-227.
    3. Loyalka, Prashant & Song, Yingquan & Wei, Jianguo & Zhong, Weiping & Rozelle, Scott, 2013. "Information, college decisions and financial aid: Evidence from a cluster-randomized controlled trial in China," Economics of Education Review, Elsevier, vol. 36(C), pages 26-40.
    4. Kleiman-Weiner, Max & Luo, Renfu & Zhang, Linxiu & Shi, Yaojiang & Medina, Alexis & Rozelle, Scott, 2013. "Eggs versus chewable vitamins: Which intervention can increase nutrition and test scores in rural China?," China Economic Review, Elsevier, vol. 24(C), pages 165-176.
    5. Bai, Yunli & Zhang, Linxiu & Yi, Hongmei & Zheng, Liming & Rozelle, Scott, 2017. "The Impact of an Academic High School Tuition Relief Program on Students’ Matriculation into High Schools in Rural China," China Economic Review, Elsevier, vol. 43(C), pages 16-28.
    6. Wang, Xiaobing & Liu, Chengfang & Zhang, Linxiu & Yue, Ai & Shi, Yaojiang & Chu, James & Rozelle, Scott, 2013. "Does financial aid help poor students succeed in college?," China Economic Review, Elsevier, vol. 25(C), pages 27-43.
    7. Renfu Luo & Yaojiang Shi & Linxiu Zhang & Chengfang Liu & Scott Rozelle & Brian Sharbono & Ai Yue & Qiran Zhao & Reynaldo Martorell, 2012. "Nutrition and Educational Performance in Rural China's Elementary Schools: Results of a Randomized Control Trial in Shaanxi Province," Economic Development and Cultural Change, University of Chicago Press, vol. 60(4), pages 735-772.
    8. Junxia Zeng & Xiaopeng Pang & Linxiu Zhang & Alexis Medina & Scott Rozelle, 2014. "Gender Inequality In Education In China: A Meta-Regression Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 474-491, April.
    9. Loyalka, Prashant & Song, Yingquan & Wei, Jianguo, 2012. "The distribution of financial aid in China: Is aid reaching poor students?," China Economic Review, Elsevier, vol. 23(4), pages 898-917.
    10. Li Han & Jiaxin Xie, 2015. "Can Conditional Grants Attract Better Students: Evidence from Chinese Normal Universities," HKUST IEMS Working Paper Series 2015-14, HKUST Institute for Emerging Market Studies, revised Mar 2015.

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