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Finish It and It’s Free: An Evaluation of College Graduation Subsidies

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Abstract

Despite the rapid increase in the returns to higher education witnessed in the labor market over the past few decades, there has also been a marked increase in the share of individuals who dropout of college or university. To boost student persistence in higher education, several Canadian provincial governments introduced a set of reforms that were designed as subsidies for college graduation. In addition, these policies were designed to discourage internal migration following graduation. Using data from both administrative tax records as well as longitudinal surveys, I analyze the effectiveness of these policies. The main findings are that the programs had no effect on internal migration, but significantly reduced college dropout rates.

Suggested Citation

  • Matthew D. Webb, 2019. "Finish It and It’s Free: An Evaluation of College Graduation Subsidies," Carleton Economic Papers 19-08, Carleton University, Department of Economics.
    • Handle: RePEc:car:carecp:19-08
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    Cited by:

    1. is not listed on IDEAS
    2. German Pulido, 2025. "Assessing the Efficacy of Debt Forgiveness Incentives in Promoting Higher Education Outcomes: Evidence from Colombia's National Student Loan Company," CEPEO Working Paper Series 25-02, UCL Centre for Education Policy and Equalising Opportunities, revised Mar 2025.

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    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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