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ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare

Author

Listed:
  • Denning, Jeffrey T.

    (University of Notre Dame)

  • Marx, Benjamin M.

    (University of Illinois)

  • Turner, Lesley

    (Vanderbilt University)

Abstract

We estimate effects of the Pell Grant - the largest U.S. federal grant for college students - using administrative data from Texas public colleges and a discontinuity in grant generosity for low-income students. Within four-year institutions, eligibility for additional grant aid significantly increases first-time students' degree completion and later earnings. Our estimated impacts on earnings alone are enough to fully recoup government expenditures within 10 years, suggesting that financial aid likely pays for itself several times over.

Suggested Citation

  • Denning, Jeffrey T. & Marx, Benjamin M. & Turner, Lesley, 2018. "ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare," IZA Discussion Papers 11792, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11792
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    More about this item

    Keywords

    Pell Grant;

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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