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Testing Means-Tested Aid

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Listed:
  • Richard Murphy
  • Gill Wyness

Abstract

Inequalities do not end once students enter higher education. Yet, the majority of papers on the effectiveness of education aid examine its impact on college enrolment. In this paper, we provide evidence on the causal impact of means-tested financial aid on the outcomes of students who have already enrolled in college. To do so, we exploit a unique non-salient financial aid program which varies both across and within institutions, and for which eligibility is a highly non-linear function of parental income. Our findings suggest that increasing aid by £1,000 increases the chances of gaining a good degree by 3.7 percentage points.

Suggested Citation

  • Richard Murphy & Gill Wyness, 2016. "Testing Means-Tested Aid," CESifo Working Paper Series 6105, CESifo.
    • Handle: RePEc:ces:ceswps:_6105
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    References listed on IDEAS

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    Cited by:

    1. Judith M. Delaney & Paul J. Devereux, 2020. "How Gender and Prior Disadvantage Predict Performance in College," The Economic and Social Review, Economic and Social Studies, vol. 51(2), pages 189-239.
    2. José Montalbán, 2019. "Countering moral hazard in higher education: The role of performance incentives in need-based grants," Working Papers halshs-02160365, HAL.
    3. Solis, Alex, 2019. "Measuring the Effect of Student Loans on the College Dropout Rate," Working Paper Series 2019:8, Uppsala University, Department of Economics.
    4. Bietenbeck, Jan & Leibing, Andreas & Marcus, Jan & Weinhardt, Felix, 2023. "Tuition fees and educational attainment," European Economic Review, Elsevier, vol. 154(C).
    5. José Montalbán, 2019. "Countering moral hazard in higher education: The role of performance incentives in need-based grants," PSE Working Papers halshs-02160365, HAL.
    6. Murphy, Richard & Scott-Clayton, Judith & Wyness, Gill, 2019. "The end of free college in England: Implications for enrolments, equity, and quality," Economics of Education Review, Elsevier, vol. 71(C), pages 7-22.

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    More about this item

    Keywords

    higher education; financial aid; degree completion;
    All these keywords.

    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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