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Merit aid and post-college retention in the state

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  • Sjoquist, David L.
  • Winters, John V.

Abstract

One goal of state merit-based financial aid programs is to increase the stock of college-educated labor in the state by retaining college-educated persons in the state after college. However, there has been surprisingly little research on whether state merit aid programs are effective at this goal. This paper investigates the effect of state merit aid programs on the post-college location of 24–30year olds. We use decennial census and American Community Survey microdata to consider post-college retention effects in the 25 states that implemented merit aid programs between 1991 and 2004. Our preferred specification implies that strong state merit aid programs on average increase the probability that a college attendee lives in his or her birth state during ages 24–30 by 2.76 percentage points. We also estimate the effect for individual states and find meaningful differences across states in the effect of merit aid programs on in-state post-college retention and explore explanations for these differences.

Suggested Citation

  • Sjoquist, David L. & Winters, John V., 2014. "Merit aid and post-college retention in the state," Journal of Urban Economics, Elsevier, vol. 80(C), pages 39-50.
  • Handle: RePEc:eee:juecon:v:80:y:2014:i:c:p:39-50
    DOI: 10.1016/j.jue.2013.10.003
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    Citations

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    Cited by:

    1. Eric Bettinger & Oded Gurantz & Laura Kawano & Bruce Sacerdote, 2016. "The Long Run Impacts of Merit Aid: Evidence from California’s Cal Grant," NBER Working Papers 22347, National Bureau of Economic Research, Inc.
    2. David L. Sjoquist & John V. Winters, 2015. "State Merit Aid Programs and College Major: A Focus on STEM," Journal of Labor Economics, University of Chicago Press, vol. 33(4), pages 973-1006.
    3. John V. Winters, 2017. "Do earnings by college major affect graduate migration?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(3), pages 629-649, November.
    4. Fitzpatrick, Maria D. & Jones, Damon, 2016. "Post-baccalaureate migration and merit-based scholarships," Economics of Education Review, Elsevier, vol. 54(C), pages 155-172.
    5. Sjoquist, David L. & Winters, John V., 2013. "The effects of HOPE on post-college retention in the Georgia workforce," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 479-490.
    6. David Sjoquist & John Winters, 2015. "The effect of Georgia’s HOPE scholarship on college major: a focus on STEM," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-29, December.
    7. Winters, John V., 2014. "The Production and Stock of College Graduates for U.S. States," IZA Discussion Papers 8730, Institute for the Study of Labor (IZA).
    8. David L. Sjoquist & John V. Winters, 2016. "The Effects of State Merit Aid Programs on Attendance at Elite Colleges," Southern Economic Journal, Southern Economic Association, vol. 83(2), pages 527-549, October.
    9. Elsayed, Mahmoud A.A., 2016. "The Impact of Education Tax Benefits on College Completion," Economics of Education Review, Elsevier, vol. 53(C), pages 16-30.
    10. Ransom, Tyler & Winters, John V., 2016. "Do Foreigners Crowd Natives out of STEM Degrees and Occupations? Evidence from the U.S. Immigration Act of 1990," IZA Discussion Papers 9920, Institute for the Study of Labor (IZA).
    11. David L. Sjoquist & John V. Winters, 2015. "State Merit-Based Financial Aid Programs And College Attainment," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 364-390, June.
    12. Yasuhiro Sato & Masaaki Toma, 2017. "Transition of Spatial Distribution of Human Capital in Japan," CIRJE F-Series CIRJE-F-1046, CIRJE, Faculty of Economics, University of Tokyo.
    13. Yasuhiro Sato & Masaaki Toma, 2017. "Transition of Spatial Distribution of Human Capital in Japan," CIRJE F-Series CIRJE-F-1046, CIRJE, Faculty of Economics, University of Tokyo.
    14. Gregory B. Upton, 2016. "The Effects of Merit-Based Scholarships on Educational Outcomes," Journal of Labor Research, Springer, vol. 37(2), pages 235-261, June.
    15. Robert R. Dunn, 2015. "Outmigration and State and Local Appropriations for Public Higher Education," The Review of Regional Studies, Southern Regional Science Association, vol. 45(3), pages 237-251, Winter.

    More about this item

    Keywords

    College education; Merit aid; Migration; Retention; Brain drain;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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