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Pell Grants and Student Success: Evidence from the Universe of Federal Aid Recipients

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  • Amanda Eng
  • Jordan Matsudaira

Abstract

The Federal Pell Grant Program lowers the cost of higher education for low-income students. We estimate Pell’s average effect for the universe of federally aided students—the broadest swath of higher education studied to date. Exploiting discontinuities and kinks in the grant schedule, we find that the effect of Pell on completion rates and postcollege earnings is much smaller than the findings of recent prominent studies focused on specific states. We argue that interactions between Pell grants and state aid programs may explain this difference, underscoring the importance of understanding how the impact of financial aid depends on context.

Suggested Citation

  • Amanda Eng & Jordan Matsudaira, 2021. "Pell Grants and Student Success: Evidence from the Universe of Federal Aid Recipients," Journal of Labor Economics, University of Chicago Press, vol. 39(S2), pages 413-454.
  • Handle: RePEc:ucp:jlabec:doi:10.1086/712556
    DOI: 10.1086/712556
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    Cited by:

    1. Kofoed, Michael S., 2022. "Pell Grants and Labor Supply: Evidence from a Regression Kink," IZA Discussion Papers 15061, Institute of Labor Economics (IZA).
    2. Ian Fillmore & Sean McMahon, 2022. "The Effect of Federal Grants on Student Outcomes," Working Papers 2022-011, Human Capital and Economic Opportunity Working Group.
    3. Penney, Jeffrey & Lehrer, Steven F. & Bernal, Gloria L. & Reyes, Luis Carlos, 2023. "Do opportunities for low-income students at top colleges promote academic success? Evidence from Colombia's Ser Pilo Paga program," CLEF Working Paper Series 64, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    4. Renée, Laëtitia, 2022. "The long-term effects of financial aid and career education: Evidence from a randomized experiment," CLEF Working Paper Series 46, Canadian Labour Economics Forum (CLEF), University of Waterloo.

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