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Does reducing student support affect scholastic performance? Evidence from a Dutch reform

In: The Economics of Education and Training

Author

Listed:
  • Michèle Belot

    (University of Essex)

  • Erik Canton

    (European Commission)

  • Dinand Webbink

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

This paper investigates the impact of student support on performance and time allocation of students in Dutch higher education. In 1996 the maximum duration of grants was reduced by 1 year, and thereby limited to the nominal duration of the study program. This reform could have had substantial financial consequences for students. We evaluate the effects of the reform using a difference-in-differences approach. Our main findings are that after the reform, students early in their study (i) switched less to other programs, (ii) obtained higher grades, while (iii) they did not spend more time studying or working. In addition, for students not older than 20 years when they started their study we find larger effects on all performance variables (switching, percentage of completed courses, graduation in the first year and grade point averages). These findings are consistent with recent evidence on heterogeneous treatment effects for higher ability students.

Suggested Citation

  • Michèle Belot & Erik Canton & Dinand Webbink, 2008. "Does reducing student support affect scholastic performance? Evidence from a Dutch reform," Studies in Empirical Economics, in: Christian Dustmann & Bernd Fitzenberger & Stephen Machin (ed.), The Economics of Education and Training, pages 7-21, Springer.
    • Handle: RePEc:spr:stecpp:978-3-7908-2022-5_2
    DOI: 10.1007/978-3-7908-2022-5_2
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    Cited by:

    1. Been, Jim & Knoef, Marike, 2023. "Student loans, spending, and parental transfers: insights from a nudge in student loan policy in the Netherlands," Other publications TiSEM d360b770-5a7a-449a-84be-3, Tilburg University, School of Economics and Management.
    2. Booij, Adam S. & Leuven, Edwin & Oosterbeek, Hessel, 2012. "The role of information in the take-up of student loans," Economics of Education Review, Elsevier, vol. 31(1), pages 33-44.
    3. 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.
    4. Loris Vergolini & Nadir Zanini, 2012. "How does aid matter? The effect of financial aid on university enrolment decisions," Working Papers 2012/7, Institut d'Economia de Barcelona (IEB).
    5. 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.
    6. 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).
    7. Roel van Elk & Michelle Ebens & Dinand Webbink & Adam Booij, 2011. "The effect of the supplementary grant on parental contribution in the Netherlands," CPB Discussion Paper 187, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Canton, Erik & de Jong, Frank, 2005. "The demand for higher education in The Netherlands, 1950-1999," Economics of Education Review, Elsevier, vol. 24(6), pages 651-663, December.
    9. Erik Canton & A. Blom, 2004. "Do student loans improve accessibility to higher education and student performance? An impact study of the SOFES program in Mexico," CPB Discussion Paper 33, CPB Netherlands Bureau for Economic Policy Analysis.
    10. V. Rattini, 2014. "The Causal Effect of Scholarships Targeted at Low Income Students on Performance: Evidence from Italy," Working Papers wp968, Dipartimento Scienze Economiche, Universita' di Bologna.
    11. Giorgio Di Pietro, 2012. "The Bologna Process and widening participation in university education: new evidence from Italy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(3), pages 357-374, August.
    12. de Gendre, Alexandra & Kabátek, Jan, 2021. "From Subsidies to Loans: The Effects of a National Student Finance Reform on the Choices of Secondary School Students," IZA Discussion Papers 14686, Institute of Labor Economics (IZA).
    13. Loris Vergolini & Nadir Zanini, 2012. "How does aid matter? The effect of financial aid on university enrolment decisions," Working Papers 2012/7, Institut d'Economia de Barcelona (IEB).
    14. Azzolini, Davide & Martini, Alberto & Rettore, Enrico & Romano, Barbara & Schizzerotto, Antonio & Vergolini, Loris, 2018. "Testing a Social Innovation in Financial Aid for Low-Income Students: Experimental Evidence from Italy," IZA Discussion Papers 11625, Institute of Labor Economics (IZA).
    15. Tommaso Agasisti & Samuele Murtinu, 2013. "Are we wasting public money? No! The effects of grants on Italian university students’ performances," Working Papers 2013/33, Institut d'Economia de Barcelona (IEB).
    16. Tommaso Agasisti & Samuele Murtinu, 2013. "Are we wasting public money? No! The effects of grants on Italian university students’ performances," Working Papers 2013/33, Institut d'Economia de Barcelona (IEB).
    17. Marc van der Steeg, 2005. "Why should governments intervene in education, and how effective is education policy," CPB Memorandum 122, CPB Netherlands Bureau for Economic Policy Analysis.

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    Keywords

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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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