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The Tennessee Education Lottery Scholarship: A Reward for Past Achievement or Motivator for Future Performance?


  • David A. Penn
  • Reuben Kyle


The Tennessee lottery scholarship (TELS) program is intended to make college more affordable for young people in Tennessee, with the aim of increasing higher education enrollment and retention rates. One way to evaluate the effectiveness of TELS is to determine to what extent did the scholarship change student behavior? That is, does TELS induce desirable behavior that would not otherwise occur? Using a logit model to predict year-over-year college retention, we conclude that TELS has a positive, but small, effect on student behavior in Tennessee. The biggest impact of TELS occurs among continuing students, with no effect for first-time students.

Suggested Citation

  • David A. Penn & Reuben Kyle, 2007. "The Tennessee Education Lottery Scholarship: A Reward for Past Achievement or Motivator for Future Performance?," Working Papers 200707, Middle Tennessee State University, Department of Economics and Finance.
  • Handle: RePEc:mts:wpaper:200707

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    Cited by:

    1. Chevalier, Arnaud & Gibbons, Steve & Thorpe, Andy & Snell, Martin & Hoskins, Sherria, 2009. "Students' academic self-perception," Economics of Education Review, Elsevier, vol. 28(6), pages 716-727, December.
    2. Christian Andersson & Per Johansson, 2013. "Social stratification and out-of-school learning," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(3), pages 679-701, June.

    More about this item


    lottery; scholarship;

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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