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The Effects of the Kalamazoo Promise Scholarship on College Enrollment, Persistence, and Completion

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Abstract

We estimate the effects on postsecondary education outcomes of the Kalamazoo Promise, a generous place-based college scholarship. We identify Promise effects using difference-in-differences, comparing eligible to ineligible graduates before and after the Promise’s initiation. According to our estimates, the Promise significantly increases college enrollment, college credits attempted, and credential attainment. Stronger effects occur for minorities and women. Predicted lifetime earnings effects of the Promise’s credential gains, compared to the Promise’s scholarship costs, represent an internal rate of return of 11.3 percent. Based on our results, simple and generous scholarships can significantly increase educational attainment and provide net economic benefits.

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  • Timothy J. Bartik & Brad J. Hershbein & Marta Lachowska, 2015. "The Effects of the Kalamazoo Promise Scholarship on College Enrollment, Persistence, and Completion," Upjohn Working Papers 15-228, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:15-229
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    10. Timothy J. Bartik & Marta Lachowska, 2014. "The Short-Term Effects of the Kalamazoo Promise Scholarship on Student Outcomes," Research in Labor Economics, in: New Analyses of Worker Well-Being, volume 38, pages 37-76, Emerald Group Publishing Limited.
    11. Philip Oreopoulos & Kjell G. Salvanes, 2011. "Priceless: The Nonpecuniary Benefits of Schooling," Journal of Economic Perspectives, American Economic Association, vol. 25(1), pages 159-184, Winter.
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    Cited by:

    1. LeGower, Michael & Walsh, Randall, 2017. "Promise scholarship programs as place-making policy: Evidence from school enrollment and housing prices," Journal of Urban Economics, Elsevier, vol. 101(C), pages 74-89.
    2. Lindsay C. Page & Jennifer E. Iriti & Danielle J. Lowry & Aaron M. Anthony, 2019. "The Promise of Place-Based Investment in Postsecondary Access and Success: Investigating the Impact of the Pittsburgh Promise," Education Finance and Policy, MIT Press, vol. 14(4), pages 572-600, Fall.
    3. Celeste K. Carruthers & Christopher Jepsen, 2020. "Vocational Education: An International Perspective," CESifo Working Paper Series 8718, CESifo.
    4. Page, Lindsay C. & Scott-Clayton, Judith, 2016. "Improving college access in the United States: Barriers and policy responses," Economics of Education Review, Elsevier, vol. 51(C), pages 4-22.
    5. Sara Goldrick‐Rab & Marshall Steinbaum, 2020. "What Is The Problem With Student Debt?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 534-540, March.
    6. Elaine W. Leigh & Manuel S. González Canché, 2021. "The College Promise in Communities: Do Place-based Scholarships Affect Residential Mobility Patterns?," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(3), pages 259-308, May.
    7. Iriti, Jennifer & Page, Lindsay C. & Bickel, William E., 2018. "Place-based scholarships: Catalysts for systems reform to improve postsecondary attainment," International Journal of Educational Development, Elsevier, vol. 58(C), pages 137-148.
    8. Zabek, Mike, 2018. "Local Ties in Spatial Equilibrium," SocArXiv rpq5z, Center for Open Science.
    9. Lindsay C. Page & Judith Scott-Clayton, 2015. "Improving College Access in the United States: Barriers and Policy Responses," NBER Working Papers 21781, National Bureau of Economic Research, Inc.
    10. Brad J. Hershbein & Isabel McMullen & Brian Pittelko & Bridget Timmeney, 2021. "Beyond degrees: Longer term outcomes of the Kalamazoo Promise," Upjohn Working Papers 21-350, W.E. Upjohn Institute for Employment Research.
    11. Robert Bifulco & Ross Rubenstein & Hosung Sohn, 2017. "Using Synthetic Controls to Evaluate the Effect of Unique Interventions: The Case of Say Yes to Education," Evaluation Review, , vol. 41(6), pages 593-619, December.
    12. Deven E. Carlson & Alex Schmidt & Sarah Souders & Barbara L. Wolfe, 2020. "The Effects of Need-Based Financial Aid on Employment and Earnings: Experimental Evidence from the Fund for Wisconsin Scholars," NBER Working Papers 27125, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    place-based scholarship; enrollment; college completion; natural experiment; difference-in-differences; education policy;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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