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The Role of Merit-Based and Need-Based Financial Aid: Evidence from Trieste University's Grant Programs

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  • Grazia Graziosi

Abstract

The aim of this paper is to investigate whether the Italian University grants are an effective tool to prevent student drop-out and to favor the degree attainment, both for merit and need-based financial aids. The survey units are Italian students enrolled on a degree course in Chemistry, Physics and Mathematics from 2002/03 until 2007/08 in the University of Trieste. On the one hand, the Regional Agency for the Right to Education offers some grants every year to eligible students from low-income families (rarely related to merit). On the other hand, Fonda Foundation offers some (only) merit-based grants to the best students enrolled in Chemistry, Physics and Mathematics degree courses. In order to estimate the causal effect of receiving a grant, we follow the counterfactual analysis and we match treated and control units using Genetic matching and Coarsened Exact Matching. The results suggest that the income-based financial aids have a positive impact to prevent drop-out at 2nd year, but a non significant effect on graduation time, whereas the merit-based scholarships increase the probability to achieve the degree within the set time frame.

Suggested Citation

  • Grazia Graziosi, 2014. "The Role of Merit-Based and Need-Based Financial Aid: Evidence from Trieste University's Grant Programs," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 103-126.
    • Handle: RePEc:mul:jqat1f:doi:10.1427/76116:y:2014:i:1:p:103-126
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    Keywords

    Financial Higher Education; Evaluation of University Grants; Counterfactual Analysis. JEL classification: I22; H52; C21.;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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