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The Effect of Merit-Based Scholarships on Educational Outcomes: An Analysis of the Arizona AIMS Scholarship

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Abstract

This paper analyzes the effect of a statewide merit-based scholarship program on educational outcomes in Arizona. It tests whether Arizona�s Instrument to Measure Standards (AIMS) scholarship has an effect on a comprehensive set of educational outcomes such as the number of applicants, student admissions, first-year first-time enrollment, ACT scores of entering freshman, retention rates, as well as on the level of tuition and fees at the three schools targeted by the program; Arizona State University, University of Arizona and Northern Arizona University. Both difference-in-differences estimation as well as synthetic control methods shows that AIMS has an economically and statistically significant effect on many of these outcomes, primarily enrollment and tuition. Enrollment effects are greatest among African American and Hispanic students and are significant for both men and women.

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  • Gregory Upton Jr., 2014. "The Effect of Merit-Based Scholarships on Educational Outcomes: An Analysis of the Arizona AIMS Scholarship," Departmental Working Papers 2014-01, Department of Economics, Louisiana State University.
  • Handle: RePEc:lsu:lsuwpp:2014-01
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    1. Harris Dellas & Plutarchos Sakellaris, 2003. "On the cyclicality of schooling: theory and evidence," Oxford Economic Papers, Oxford University Press, vol. 55(1), pages 148-172, January.
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    3. Michael F. Lovenheim, 2011. "The Effect of Liquid Housing Wealth on College Enrollment," Journal of Labor Economics, University of Chicago Press, vol. 29(4), pages 741-771.
    4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    5. 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.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    7. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
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    Cited by:

    1. 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.

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