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Working while studying? Student aid design and socioeconomic achievement disparities in higher education

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  • Avdic, Daniel
  • Gartell, Marie

Abstract

We analyze the relation between student academic achievement and labor supply by exploiting institutional variation derived from a Swedish public financial aid reform which altered the relative cost of financing college education through taking up student loans and engaging in market work, respectively. Applying detailed administrative data we estimate relative changes in earnings and academic credits attributed to the intervention for students from different social backgrounds. Results show that the reform increased relative earnings and decreased relative study pace for students from a lower socioeconomic background. These effects appear to have been driven by students more financially constrained by the previous system.

Suggested Citation

  • Avdic, Daniel & Gartell, Marie, 2015. "Working while studying? Student aid design and socioeconomic achievement disparities in higher education," Labour Economics, Elsevier, vol. 33(C), pages 26-40.
  • Handle: RePEc:eee:labeco:v:33:y:2015:i:c:p:26-40
    DOI: 10.1016/j.labeco.2015.01.002
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    Cited by:

    1. Elena Mattana & Juanna Joensen, 2016. "Student Aid, Academic Achievement, and Labor Market Behavior," 2016 Meeting Papers 1102, Society for Economic Dynamics.
    2. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of Student Financial Aid: A Microsimulation for Germany," Annual Conference 2016 (Augsburg): Demographic Change 145727, Verein für Socialpolitik / German Economic Association.
    3. Stefanie P. Herber & Michael Kalinowski, 2016. "Non-Take-Up of Student Financial Aid: A Microsimulation for Germany," SOEPpapers on Multidisciplinary Panel Data Research 844, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Herber, Stefanie P. & Kalinowski, Michael, 2016. "Non-take-up of student financial aid: A microsimulation for Germany," BERG Working Paper Series 109, Bamberg University, Bamberg Economic Research Group.

    More about this item

    Keywords

    Financial aid reform; Student labour supply; Time-to-graduation; Spillover effect; Socioeconomic inequality; Education policy;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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