Keeping up with the Joneses: Institutional changes following the adoption of a merit aid policy
The increasing use by private colleges and universities of financial aid based on "merit", as opposed to based solely on financial need has caused many to raise concerns that this type of aid will go mainly to higher income students crowding out aid to lower income students. However, some analysts suggest that by attracting more "almost full-paying" students through the use of merit aid, institutions will have more financial resources that they can use to increase their financial aid to low-income students and thus their enrollment. Results using data from the College Board's Annual Survey of Colleges and other secondary data sources suggest that the increased use of merit aid is associated with a decrease in enrollment of low-income and minority students, particularly at more selective institutions. Middle and bottom tier colleges may be offsetting costs with tuition increases, as the introduction of merit aid is accompanied by an increase in net costs.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Ronald G. Ehrenberg & Liang Zhang, 2004.
"Do Tenured and Tenure-Track Faculty Matter?,"
NBER Working Papers
10695, National Bureau of Economic Research, Inc.
- Ronald G. Ehrenberg & Daniel R. Sherman, 1982.
"Optimal Financial Aid Policies for a Selective University,"
NBER Working Papers
1014, National Bureau of Economic Research, Inc.
- Ronald G. Ehrenberg & Daniel R. Sherman, 1984. "Optimal Financial Aid Policies for a Selective University," Journal of Human Resources, University of Wisconsin Press, vol. 19(2), pages 202-230.
- Monks, James, 2009. "The impact of merit-based financial aid on college enrollment: A field experiment," Economics of Education Review, Elsevier, vol. 28(1), pages 99-106, February.
- Rothschild, Michael & White, Lawrence J, 1995. "The Analytics of the Pricing of Higher Education and Other Services in Which the Customers Are Inputs," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 573-586, June.
- Singell, Larry D, Jr & Stone, Joe A, 2002. "The Good, the Poor and the Wealthy: Who Responds Most to College Financial Aid?," Bulletin of Economic Research, Wiley Blackwell, vol. 54(4), pages 393-407, October.
- Dennis Epple & Richard Romano & Holger Sieg, "undated".
"Admission, Tuition, and Financial Aid Policies in the Market for Higher Education,"
GSIA Working Papers
2003-04, Carnegie Mellon University, Tepper School of Business.
- Dennis Epple & Richard Romano & Holger Sieg, 2006. "Admission, Tuition, and Financial Aid Policies in the Market for Higher Education," Econometrica, Econometric Society, vol. 74(4), pages 885-928, 07.
- Gordon C. Winston, 1999. "Subsidies, Hierarchy and Peers: The Awkward Economics of Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 13-36, Winter.
- Albert Yung-Hsu Liu & Ronald G. Ehrenberg & Jesenka Mrdjenovic, 2007. "Diffusion of Common Application Membership and Admissions Outcomes at American Colleges and Universities," NBER Working Papers 13175, National Bureau of Economic Research, Inc.
- Ronald G. Ehrenberg & Liang Zhang & Jared Levin, 2005. "Crafting A Class: The Trade Off Between Merit Scholarships and Enrolling Lower-Income Students," NBER Working Papers 11437, National Bureau of Economic Research, Inc.
- Baum, Sandra R. & Schwartz, Saul, 1988. "Merit aid to college students," Economics of Education Review, Elsevier, vol. 7(1), pages 127-134, February.
- Bridget Terry Long, 2004. "How do Financial Aid Policies Affect Colleges?: The Institutional Impact of the Georgia HOPE Scholarship," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:30:y:2011:i:5:p:1022-1033. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.