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Undergraduate Financial Aid and Subsequent Giving Behavior

  • Dugan, K.
  • Mullin, C.H.
  • Siegfried, J.J.

Data on 2,822 Vanderbilt University graduates are used to investigate alumni giving behavior during the eight years after graduation. A two stage model accounting for incidental truncation is used to first estimate the likelihood of making a contribution and second estimate the average gift size conditional on contributing. The type of financial aid received as an undergraduate appears to have a greater influence on subsequent alumni generosity than the amount received. Adding some scholarship to a loan-only package or eliminating all loans from a mixed loan-grant package increases the likelihood of a subsequent contribution. Increasing the total size of the package or altering the proportions of an already mixed package appears to be inconsequential for future donations. Students who receive small merit scholarships contribute more as alumni than students who receive either no merit scholarship or a large merit scholarship.

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File URL: http://sites.williams.edu/wpehe/files/2011/06/DP-57.pdf
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Paper provided by Department of Economics, Williams College in its series Williams Project on the Economics of Higher Education with number DP-57.

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Length: 24 pages
Date of creation: Nov 2000
Date of revision:
Handle: RePEc:wil:wilehe:57
Contact details of provider: Postal: Williamstown, MA 01267
Phone: 413 597 2476
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Web page: http://econ.williams.edu
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  1. Ethel B. Jones & John D. Jackson, 1990. "College Grades and Labor Market Rewards," Journal of Human Resources, University of Wisconsin Press, vol. 25(2), pages 253-266.
  2. Clotfelter, C. T., 2003. "Alumni giving to elite private colleges and universities," Economics of Education Review, Elsevier, vol. 22(2), pages 109-120, April.
  3. Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-35, May.
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