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Financial Aid and Upward Mobility: Evidence from Colombia’s Ser Pilo Paga

Author

Listed:
  • Juliana Londoño-Vélez
  • Catherine Rodríguez
  • Fabio Sánchez
  • Luis Esteban Álvarez-Arango

Abstract

We study the impact of financial aid on upward mobility. We estimate the causal impacts of a Colombian policy targeting high-achieving, low-socioeconomic-status students on later-life educational and labor market outcomes. Using regression discontinuity design, difference-in-differences, and population-wide administrative microdata, we find that the policy boosted attendance and completion at high-value-added colleges, particularly in STEM fields. Improved college quality led to greater skill development. Nine years later, recipients earn 18 log points more and are more likely to reach the top 1%. The policy narrowed socioeconomic gaps in college quality, attainment, skill development, earnings, and returns to ability, improving equity and efficiency.

Suggested Citation

  • Juliana Londoño-Vélez & Catherine Rodríguez & Fabio Sánchez & Luis Esteban Álvarez-Arango, 2026. "Financial Aid and Upward Mobility: Evidence from Colombia’s Ser Pilo Paga," Journal of Political Economy, University of Chicago Press, vol. 134(7), pages 2119-2165.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/740226
    DOI: 10.1086/740226
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