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The Effect of Grants on University Dropout Rates: Evidence from the Italian Case

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  • Francesca Modena
  • Enrico Rettore
  • Giulia Martina Tanzi

Abstract

In this paper we evaluate the impact of need-based grants on university outcomes, using student-level administrative data from all Italian universities. We compare students receiving the grant to those who were eligible but not awarded the grant. We estimate the average treatment, using blocking on the propensity score with regression adjustment. We show that around one-third of student recipients of grants would have left university at the end of the first year in absence of the aid. Moreover, grants have a relevant impact on the probability of completing college education.

Suggested Citation

  • Francesca Modena & Enrico Rettore & Giulia Martina Tanzi, 2020. "The Effect of Grants on University Dropout Rates: Evidence from the Italian Case," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 343-370.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/710220
    DOI: 10.1086/710220
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    Cited by:

    1. Modena, Francesca & Rettore, Enrico & Tanzi, Giulia, 2021. "Does Gender Matter? The Effect of High Performing Peers on Academic Performances," IZA Discussion Papers 14806, Institute of Labor Economics (IZA).
    2. Francesca Modena & Giulia Martina Tanzi & Santiago Pereda Fernandez, 2020. "On the design of grant assignment rules," Temi di discussione (Economic working papers) 1307, Bank of Italy, Economic Research and International Relations Area.
    3. Berlingieri, Francesco & Diegmann, André & Sprietsma, Maresa, 2023. "Preferred field of study and academic performance," Economics of Education Review, Elsevier, vol. 95(C).
    4. Minaya, Veronica & Agasisti, Tommaso & Bratti, Massimiliano, 2022. "When need meets merit: The effect of increasing merit requirements in need-based student aid," European Economic Review, Elsevier, vol. 146(C).
    5. Delogu, Marco & Lagravinese, Raffaele & Paolini, Dimitri & Resce, Giuliano, 2024. "Predicting dropout from higher education: Evidence from Italy," Economic Modelling, Elsevier, vol. 130(C).
    6. Silva, Polyana Tenório de Freitas e & Sampaio, Luciano Menezes Bezerra, 2023. "Does student aid make a degree more likely? Evidence of the permanence scholarship program from survival models," International Journal of Educational Development, Elsevier, vol. 96(C).
    7. Alberto Martini & Davide Azzolini & Barbara Romano & Loris Vergolini, 2021. "Increasing College Going by Incentivizing Savings: Evidence from a Randomized Controlled Trial in Italy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 814-840, June.
    8. Veronica Rattini, 2022. "The Effects of Financial Aid on Graduation and Labor Market Outcomes: New Evidence from Matched Education-Labor Data," CESifo Working Paper Series 10010, CESifo.
    9. Modena, Francesca & Rettore, Enrico & Tanzi, Giulia Martina, 2022. "Asymmetries in the gender effect of high-performing peers: Evidence from tertiary education," Labour Economics, Elsevier, vol. 78(C).

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