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Heterogeneous effects of merit scholarships: do program features matter?

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  • Ning Jia

Abstract

This paper examines the role of program features in determining the effectiveness of merit scholarships on educational outcomes using data from the 2009 to 2014 American Community Survey. Exploiting the variation in the timing of program adoption as well as program features across states, I find that leniency of academic requirements for initial eligibility largely contributes to program effects on associate’s degree completion, whereas generosity of scholarship amount significantly increases college attendance and bachelor’s degree completion. The estimates also indicate that lower requirements for scholarship renewal appear to positively affect the likelihood of completing a degree in science, technology, engineering, and mathematics fields (STEM). The findings suggest that leniency and generosity are important determinants of program effectiveness on educational outcomes. It is thus relevant to take program features into account when designing merit scholarships.

Suggested Citation

  • Ning Jia, 2019. "Heterogeneous effects of merit scholarships: do program features matter?," Applied Economics, Taylor & Francis Journals, vol. 51(27), pages 2963-2979, June.
  • Handle: RePEc:taf:applec:v:51:y:2019:i:27:p:2963-2979
    DOI: 10.1080/00036846.2018.1564017
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    Cited by:

    1. Christopher Erwin, 2019. "Low-performing student responses to state merit scholarships," Working Papers 2019-02, Auckland University of Technology, Department of Economics.
    2. Christopher Erwin & Melissa Binder & Cynthia Miller & Kate Krause, 2020. "Performance-based aid, enhanced advising, and the income gap in college graduation: Evidence from a randomized controlled trial," Working Papers 2020-06, Auckland University of Technology, Department of Economics.
    3. Christopher Erwin & Melissa Binder, 2020. "Does Broad-Based Merit Aid Improve College Completion? Evidence from New Mexico's Lottery Scholarship," Education Finance and Policy, MIT Press, vol. 15(1), pages 164-190, Winter.

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