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The study pace among college students before and after a student aid reform: some Swedish results

  • Avdic, Daniel


    (Uppsala Center for Labor Studies)

  • Gartell, Marie


    (Institute for Futures Studies)

In 2001, the Swedish system of student aid for college students was substantially re-formed; the grant-share of the total aid was increased, students were allowed to earn more without a reduction in student aid, and the repayment schedule of the loans was significantly tightened. In this paper, we examine the effects of the reform on individual study efficiency, measured as the number of credit points achieved each semester. We use all program students with a first registration at a Swedish college between 1995 and 2001(before the reform) and estimate a linear regression model including individual fixed effects. There is a slightly positive and significant effect of the reform on the ag-gregate level. However, dividing the sample conditionally on the parental educational level reveals that the individual study efficiency has increased only for students from a strong academic background. In other words, the relative study efficiency has decreased for students from a weak academic background. The different results between students from different parental backgrounds appear to be related to the reallocation of time be-tween work and studies.

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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Labor Studies with number 2011:15.

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Length: 43 pages
Date of creation: 16 Dec 2011
Date of revision:
Handle: RePEc:hhs:uulswp:2011_015
Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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  1. David M. Linsenmeier & Harvey S. Rosen & Cecilia Elena Rouse, 2002. "Financial Aid Packages and College Enrollment Decisions: An Econometric Case Study," NBER Working Papers 9228, National Bureau of Economic Research, Inc.
  2. Brodaty, Thomas & Gary-Bobo, Robert J. & Prieto, Ana, 2008. "Does Speed Signal Ability? The Impact of Grade Repetitions on Employment and Wages," CEPR Discussion Papers 6832, C.E.P.R. Discussion Papers.
  3. Nielsen, Helena Skyt & Sørensen, Torben & Taber, Christopher, 2008. "Estimating the Effect of Student Aid on College Enrollment: Evidence from a Government Grant Policy Reform," IZA Discussion Papers 3785, Institute for the Study of Labor (IZA).
  4. Hoenack, Stephen A, 1971. "The Efficient Allocation of Subsidies to College Students," American Economic Review, American Economic Association, vol. 61(3), pages 302-11, June.
  5. Susan M. Dynarski, 1999. "Does Aid Matter? Measuring the Effect of Student Aid on College Attendance and Completion," NBER Working Papers 7422, National Bureau of Economic Research, Inc.
  6. Ronald G. Ehrenberg & Daniel R. Sherman, 1985. "Employment While in College, Academic Achievement and Post-College Outcomes: A Summary of Results," NBER Working Papers 1742, National Bureau of Economic Research, Inc.
  7. Susan Dynarski, 2002. "The Behavioral and Distributional Implications of Aid for College," American Economic Review, American Economic Association, vol. 92(2), pages 279-285, May.
  8. Kane, Thomas J, 1994. "College Entry by Blacks since 1970: The Role of College Costs, Family Background, and the Returns to Education," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 878-911, October.
  9. Bertil Holmlund & Qian Liu & Oskar Nordström Skans, 2008. "Mind the gap? Estimating the effects of postponing higher education," Oxford Economic Papers, Oxford University Press, vol. 60(4), pages 683-710, October.
  10. Häkkinen, Iida & Uusitalo, Roope, 2003. "The Effect of a Student Aid Reform on Graduation: A Duration Analysis," Working Paper Series 2003:8, Uppsala University, Department of Economics.
  11. Giorgio Brunello & Claudio Lucifora & Rudolf Winter-Ebmer, 2004. "The Wage Expectations of European Business and Economics Students," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
  12. Fredriksson, Peter, 1997. " Economic Incentives and the Demand for Higher Education," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 129-42, March.
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