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The Responses Of Youth To A Cash Transfer Conditional On Schooling: A Quasi‐Experimental Study

  • Maria Knoth Humlum
  • Rune Majlund Vejlin

We investigate the effects of financial aid on student employment and academic outcomes in high school. We exploit administrative differences in the amount of financial aid received based on timing of birth to identify the causal effects of interest. Specifically, individuals born early in a quarter receive less financial aid than comparable individuals born late in the previous quarter. We find that receiving less aid induces individuals to work more during high school. However, we do not find any evidence that receiving less financial aid and thereby working more is associated with any adverse outcomes, such as a lower high school grade point average.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 28 (2013)
Issue (Month): 4 (06)
Pages: 628-649

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Handle: RePEc:wly:japmet:v:28:y:2013:i:4:p:628-649
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  1. repec:tpr:qjecon:v:122:y:2007:i:1:p:159-208 is not listed on IDEAS
  2. Cunha, Flavio & Heckman, James J. & Lochner, Lance John & Masterov, Dimitriy V., 2005. "Interpreting the Evidence on Life Cycle Skill Formation," IZA Discussion Papers 1675, Institute for the Study of Labor (IZA).
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  8. Jacob Arendt, 2013. "The effect of public financial aid on dropout from and completion of university education: evidence from a student grant reform," Empirical Economics, Springer, vol. 44(3), pages 1545-1562, June.
  9. Donna S. Rothstein, 2007. "High School Employment and Youths' Academic Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
  10. Eissa, Nada & Hoynes, Hilary Williamson, 2004. "Taxes and the labor market participation of married couples: the earned income tax credit," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1931-1958, August.
  11. Milligan, Kevin & Lemieux, Thomas, 2006. "Incentive Effects of Social Assistance: A Regression Discontinuity Approach," Analytical Studies Branch Research Paper Series 2006280e, Statistics Canada, Analytical Studies Branch.
  12. Ralph Stinebrickner & Todd Stinebrickner, 2008. "The Effect of Credit Constraints on the College Drop-Out Decision: A Direct Approach Using a New Panel Study," American Economic Review, American Economic Association, vol. 98(5), pages 2163-84, December.
  13. Kasey S. Buckles & Daniel M. Hungerman, 2013. "Season of Birth and Later Outcomes: Old Questions, New Answers," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 711-724, July.
  14. Helena Skyt Nielsen & Torben Sørensen & Christopher Taber, 2008. "Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform," Economics Working Papers 2008-14, School of Economics and Management, University of Aarhus.
  15. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
  16. Stephen L. DesJardins & Dennis A. Ahlburg & Brian P. McCall, 2002. "Simulating the Longitudinal Effects of Changes in Financial Aid on Student Departure from College," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 653-679.
  17. Katharine L. Bradbury & Christopher L. Foote & Robert K. Triest, 2007. "Labor supply in the new century," Monograph, Federal Reserve Bank of Boston, number 52.
  18. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November.
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