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The Effects of Financial Aid and Returns Information in Selective and Less Selective Schools: Experimental Evidence from Chile

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Listed:
  • Matías Busso
  • Taryn Dinkelman
  • Claudia Martínez
  • Dario Romero

Abstract

Schools that provide higher education often belong to either a merit-based selective system or an open-access less selective system. This paper presents the results of a field experiment that provided Grade 12 students in Chile with tailored information about financial aid and average earnings and employment probabilities for schools and careers in both types of schools. No effect is found on the extensive margins of enrollment in the selective or in the less selective sector. Treated students change their intensive margin decisions: they choose careers and schools with lower expected wages and lower employment probabilities, but with higher quality relative to their baseline preferences.

Suggested Citation

  • Matías Busso & Taryn Dinkelman & Claudia Martínez & Dario Romero, 2016. "The Effects of Financial Aid and Returns Information in Selective and Less Selective Schools: Experimental Evidence from Chile," IDB Publications (Working Papers) 7937, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:7937
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    References listed on IDEAS

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    1. Philip Oreopoulos & Ryan Dunn, 2013. "Information and College Access: Evidence from a Randomized Field Experiment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(1), pages 3-26, January.
    2. Justine Hastings & Christopher A. Neilson & Seth D. Zimmerman, 2015. "The Effects of Earnings Disclosure on College Enrollment Decisions," NBER Working Papers 21300, National Bureau of Economic Research, Inc.
    3. Philip Oreopoulos & Robert S. Brown & Adam M. Lavecchia, 2017. "Pathways to Education: An Integrated Approach to Helping At-Risk High School Students," Journal of Political Economy, University of Chicago Press, vol. 125(4), pages 947-984.
    4. Taryn Dinkelman & Claudia Martínez A., 2014. "Investing in Schooling In Chile: The Role of Information about Financial Aid for Higher Education," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 244-257, May.
    5. Caroline Hoxby & Christopher Avery, 2013. "The Missing "One-Offs": The Hidden Supply of High-Achieving, Low-Income Students," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(1 (Spring), pages 1-65.
    6. Justine S. Hastings & Jeffrey M. Weinstein, 2008. "Information, School Choice, and Academic Achievement: Evidence from Two Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 123(4), pages 1373-1414.
    7. Adam M. Lavecchia & Heidi Liu & Philip Oreopoulos, 2014. "Behavioral Economics of Education: Progress and Possibilities," NBER Working Papers 20609, National Bureau of Economic Research, Inc.
    8. Alex Solis, 2017. "Credit Access and College Enrollment," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 562-622.
    9. Jorge Rodríguez & Sergio Urzúa & Loreto Reyes, 2016. "Heterogeneous Economic Returns to Post-Secondary Degrees: Evidence from Chile," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 416-460.
    10. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, Oxford University Press, vol. 125(2), pages 515-548.
    11. Eric P. Bettinger & Bridget Terry Long & Philip Oreopoulos & Lisa Sanbonmatsu, 2012. "The Role of Application Assistance and Information in College Decisions: Results from the H&R Block Fafsa Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 127(3), pages 1205-1242.
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    1. repec:eee:labeco:v:47:y:2017:i:c:p:48-63 is not listed on IDEAS

    More about this item

    Keywords

    Higher Education; Vocational Education and Training; School Choice; School Enrollment; School Attendance; High School; Human Capital Investment; Test scores; Student Loans; Scholarships; school choice; government loans; scholarships;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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