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Beyond degrees: Longer term outcomes of the Kalamazoo Promise

Author

Listed:
  • Brad J. Hershbein

    (W.E. Upjohn Institute for Employment Research)

  • Isabel McMullen

    (W.E. Upjohn Institute for Employment Research)

  • Brian Pittelko

    (W.E. Upjohn Institute for Employment Research)

  • Bridget Timmeney

    (W.E. Upjohn Institute for Employment Research)

Abstract

We estimate the effects on workforce and location outcomes of the Kalamazoo Promise, a generous, place-based college scholarship. Drawing upon administrative unemployment insurance wage records merged with individual-level education data, we identify Promise effects by comparing eligible to ineligible graduates before and after the Promise’s initiation. We supplement this quantitative analysis with surveys and interviews. Despite earlier research showing that the Kalamazoo Promise substantially increased degree attainment, we find little evidence that the program affected average earnings within 10 years of high school graduation. However, the Kalamazoo Promise may have increased the likelihood of eligible graduates having earnings, within Michigan, in the middle of the distribution. We discuss the possible role of job availability in understanding these patterns and the implications for free-tuition college programs as a workforce development tool.

Suggested Citation

  • 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.
  • Handle: RePEc:upj:weupjo:21-350
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    References listed on IDEAS

    as
    1. Brad Hershbein & Melissa S. Kearney & Luke W. Pardue, 2020. "College Attainment, Income Inequality, and Economic Security: A Simulation Exercise," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 352-355, May.
    2. Bartik, Timothy J. & Hershbein, Brad & Lachowska, Marta, 2016. "The Merits of Universal Scholarships: Benefit-Cost Evidence from the Kalamazoo Promise," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 7(3), pages 400-433, October.
    3. Rajashri Chakrabarti & Nicole Gorton & Michael F. Lovenheim, 2020. "State Investment in Higher Education: Effects on Human Capital Formation, Student Debt, and Long-Term Financial Outcomes of Students," CESifo Working Paper Series 8592, CESifo.
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    9. Timothy J. Bartik & Marta Lachowska, "undated". "The Kalamazoo Promise Scholarship," Upjohn Working Papers tjbml14, W.E. Upjohn Institute for Employment Research.
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    More about this item

    Keywords

    place-based scholarship; difference-in-differences; mixed methods; workforce outcomes; earnings; migration; 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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