IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp7381.html
   My bibliography  Save this paper

State Merit-Aid Programs and College Major: A Focus on STEM

Author

Listed:
  • Sjoquist, David L.

    () (Georgia State University)

  • Winters, John V.

    () (Oklahoma State University)

Abstract

Since 1991 more than two dozen states have adopted merit-based student financial aid programs, intended at least in part to increase the stock of human capital by improving the knowledge and skills of the state's workforce. At the same time, there has been growing concern that the U.S. is producing too few college graduates in science, technology, engineering, and mathematics (STEM) fields. Using both microdata from the American Community Survey and student records from the University System of Georgia, this paper examines whether recently adopted state merit-aid programs have affected college major decisions, with a focus on STEM fields. We find consistent evidence that state merit programs did in fact reduce the likelihood that a young person in the state will earn a STEM degree.

Suggested Citation

  • Sjoquist, David L. & Winters, John V., 2013. "State Merit-Aid Programs and College Major: A Focus on STEM," IZA Discussion Papers 7381, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7381
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp7381.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dynarski, Susan, 2000. "Hope for Whom? Financial Aid for the Middle Class and Its Impact on College Attendance," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(3), pages 629-662, September.
    2. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 414-427, August.
    3. Timothy G. Conley & Christopher R. Taber, 2011. "Inference with "Difference in Differences" with a Small Number of Policy Changes," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 113-125, February.
    4. Arcidiacono, Peter & Hotz, V. Joseph & Kang, Songman, 2012. "Modeling college major choices using elicited measures of expectations and counterfactuals," Journal of Econometrics, Elsevier, vol. 166(1), pages 3-16.
    5. Peter Arcidiacono & Esteban M. Aucejo & V. Joseph Hotz, 2016. "University Differences in the Graduation of Minorities in STEM Fields: Evidence from California," American Economic Review, American Economic Association, vol. 106(3), pages 525-562, March.
    6. Marc Luppino & Richard Sander, 2015. "College major peer effects and attrition from the sciences," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    7. Julian R. Betts & Darlene Morell, 1999. "The Determinants of Undergraduate Grade Point Average: The Relative Importance of Family Background, High School Resources, and Peer Group Effects," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 268-293.
    8. Hickman, Daniel C., 2009. "The effects of higher education policy on the location decision of individuals: Evidence from Florida's Bright Futures Scholarship Program," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 553-562, September.
    9. Magali Beffy & Denis Fougère & Arnaud Maurel, 2012. "Choosing the Field of Study in Postsecondary Education: Do Expected Earnings Matter?," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 334-347, February.
    10. Gary T. Henry & Ross Rubenstein, 2002. "Paying for grades: Impact of merit-based financial aid on educational quality," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(1), pages 93-109.
    11. Mark Stater, 2011. "Financial Aid, Student Background, and the Choice of First-year College Major," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 37(3), pages 321-343.
    12. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
    13. Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1), pages 149-163.
    14. Arcidiacono, Peter, 2004. "Ability sorting and the returns to college major," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 343-375.
    15. Goodman, Joshua, 2008. "Who merits financial aid?: Massachusetts' Adams Scholarship," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2121-2131, October.
    16. Christopher Cornwell & David B. Mustard & Deepa J. Sridhar, 2006. "The Enrollment Effects of Merit-Based Financial Aid: Evidence from Georgia's HOPE Program," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 761-786, October.
    17. Matthew Wiswall & Basit Zafar, 2015. "Determinants of College Major Choice: Identification using an Information Experiment," Review of Economic Studies, Oxford University Press, vol. 82(2), pages 791-824.
    18. Todd R. Stinebrickner & Ralph Stinebrickner, 2011. "Math or Science? Using Longitudinal Expectations Data to Examine the Process of Choosing a College Major," NBER Working Papers 16869, National Bureau of Economic Research, Inc.
    19. Montmarquette, Claude & Cannings, Kathy & Mahseredjian, Sophie, 2002. "How do young people choose college majors?," Economics of Education Review, Elsevier, vol. 21(6), pages 543-556, December.
    20. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    21. Thomas S. Dee & Linda A. Jackson, 1999. "Who Loses HOPE? Attrition from Georgia’s College Scholarship Program," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 379-390, October.
    22. David L. Sjoquist & John V. Winters, 2012. "Building the Stock of College-Educated Labor Revisited," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 270-285.
    23. Larry D. Singell Jr. & Glen R. Waddell & Bradley R. Curs, 2006. "HOPE for the Pell? Institutional Effects in the Intersection of Merit-Based and Need-Based Aid," Southern Economic Journal, Southern Economic Association, vol. 73(1), pages 79-99, July.
    24. Sjoquist, David L. & Winters, John V., 2013. "The effects of HOPE on post-college retention in the Georgia workforce," Regional Science and Urban Economics, Elsevier, vol. 43(3), pages 479-490.
    25. Kokkelenberg, Edward C. & Sinha, Esha, 2010. "Who succeeds in STEM studies? An analysis of Binghamton University undergraduate students," Economics of Education Review, Elsevier, vol. 29(6), pages 935-946, December.
    26. Freeman, James A. & Hirsch, Barry T., 2008. "College majors and the knowledge content of jobs," Economics of Education Review, Elsevier, vol. 27(5), pages 517-535, October.
    27. Bradley, Elizabeth S., 2012. "The Effect of the Business Cycle on Freshman Major Choice," MPRA Paper 42412, University Library of Munich, Germany.
    28. Rask, Kevin, 2010. "Attrition in STEM fields at a liberal arts college: The importance of grades and pre-collegiate preferences," Economics of Education Review, Elsevier, vol. 29(6), pages 892-900, December.
    29. Maria D. Fitzpatrick & Damon Jones, 2012. "Higher Education, Merit-Based Scholarships and Post-Baccalaureate Migration," NBER Working Papers 18530, National Bureau of Economic Research, Inc.
    30. Hawley, Zackary B. & Rork, Jonathan C., 2013. "The case of state funded higher education scholarship plans and interstate brain drain," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 242-249.
    31. Ralph Stinebrickner & Todd R. Stinebrickner, 2014. "A Major in Science? Initial Beliefs and Final Outcomes for College Major and Dropout," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 426-472.
    32. Mark C. Berger, 1988. "Predicted Future Earnings and Choice of College Major," ILR Review, Cornell University, ILR School, vol. 41(3), pages 418-429, April.
    33. Federman Maya, 2007. "State Graduation Requirements, High School Course Taking, and Choosing a Technical College Major," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-34, January.
    34. Judith Scott-Clayton, 2011. "On Money and Motivation: A Quasi-Experimental Analysis of Financial Incentives for College Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 46(3), pages 614-646.
    35. Griffith, Amanda L., 2010. "Persistence of women and minorities in STEM field majors: Is it the school that matters?," Economics of Education Review, Elsevier, vol. 29(6), pages 911-922, December.
    36. Bruce, Donald J. & Carruthers, Celeste K., 2014. "Jackpot? The impact of lottery scholarships on enrollment in Tennessee," Journal of Urban Economics, Elsevier, vol. 81(C), pages 30-44.
    37. Susan Dynarski, 2008. "Building the Stock of College-Educated Labor," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 576-610.
    38. Ost, Ben, 2010. "The role of peers and grades in determining major persistence in the sciences," Economics of Education Review, Elsevier, vol. 29(6), pages 923-934, December.
    39. Sjoquist, David L. & Winters, John V., 2014. "Merit aid and post-college retention in the state," Journal of Urban Economics, Elsevier, vol. 80(C), pages 39-50.
    40. Winters, John V., 2012. "Cohort crowding and nonresident college enrollment," Economics of Education Review, Elsevier, vol. 31(3), pages 30-40.
    41. Cornwell, Christopher & Lee, Kyung Hee & Mustard, David B., 2006. "The Effects of State-Sponsored Merit Scholarships on Course Selection and Major Choice in College," IZA Discussion Papers 1953, Institute for the Study of Labor (IZA).
    42. Patricia L. Farrell & Gregory S. Kienzl, 2009. "Are State Non-Need, Merit-Based Scholarship Programs Impacting College Enrollment?," Education Finance and Policy, MIT Press, vol. 4(2), pages 150-174, April.
    43. Christopher M. Cornwell & Kyung Hee Lee & David B. Mustard, 2005. "Student Responses to Merit Scholarship Retention Rules," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 895-917.
    44. Peter Arcidiacono & Esteban Aucejo & Ken Spenner, 2012. "What happens after enrollment? An analysis of the time path of racial differences in GPA and major choice," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-24, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Benjamin W. Cowan & Dustin R. White, 2014. "The Effects of Merit-Based Financial Aid on Drinking in College," Carlo Alberto Notebooks 346, Collegio Carlo Alberto.
    2. Eric Bettinger & Oded Gurantz & Laura Kawano & Bruce Sacerdote, 2016. "The Long Run Impacts of Merit Aid: Evidence from California’s Cal Grant," NBER Working Papers 22347, National Bureau of Economic Research, Inc.
    3. Peter Arcidiacono & Esteban M. Aucejo & V. Joseph Hotz, 2016. "University Differences in the Graduation of Minorities in STEM Fields: Evidence from California," American Economic Review, American Economic Association, vol. 106(3), pages 525-562, March.
    4. Winters, John V., 2014. "STEM graduates, human capital externalities, and wages in the U.S," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 190-198.
    5. Hill, Andrew J., 2017. "State affirmative action bans and STEM degree completions," Economics of Education Review, Elsevier, vol. 57(C), pages 31-40.
    6. Cowan, Benjamin W. & White, Dustin R., 2015. "The effects of merit-based financial aid on drinking in college," Journal of Health Economics, Elsevier, vol. 44(C), pages 137-149.
    7. Liu, Shimeng & Sun, Weizeng & Winters, John V., 2017. "Up in STEM, Down in Business: Changing College Major Decisions with the Great Recession," GLO Discussion Paper Series 117, Global Labor Organization (GLO).
    8. Winters, John V., 2014. "Foreign and Native-Born STEM Graduates and Innovation Intensity in the United States," IZA Discussion Papers 8575, Institute for the Study of Labor (IZA).
    9. repec:eee:labeco:v:47:y:2017:i:c:p:48-63 is not listed on IDEAS
    10. Welch, Jilleah G., 2014. "HOPE for community college students: The impact of merit aid on persistence, graduation, and earnings," Economics of Education Review, Elsevier, vol. 43(C), pages 1-20.

    More about this item

    Keywords

    college major; merit aid; HOPE scholarship; STEM;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7381. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.