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The Short-Term Effects of the Kalamazoo Promise Scholarship on Student Outcomes

In: New Analyses of Worker Well-Being

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  • Timothy J. Bartik
  • Marta Lachowska

Abstract

In order to study whether college scholarships can be an effective tool in raising students’ performance in secondary school, we use one aspect of the Kalamazoo Promise that resembles a quasi-experiment. The surprise announcement of the scholarship created a large change in expected college tuition costs that varied across different groups of students based on past enrollment decisions. This variation is arguably exogenous to unobserved student characteristics. We estimate the effects of this change by a set of “difference-in-differences” regressions where we compare the change in student outcomes in secondary school across time for different student “length of enrollment” groups. We also control for student fixed effects. We find positive effects of the Kalamazoo Promise on Promise-eligible students large enough to be deemed important – about a 9 percent increase in the probability of earning any credits and one less suspension day per year. We also find large increases in GPA among African American students.

Suggested Citation

  • 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.
  • Handle: RePEc:eme:rleczz:s0147-9121(2013)0000038002
    DOI: 10.1108/S0147-9121(2013)0000038002
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    References listed on IDEAS

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    1. Steven D. Levitt & John A. List & Susanne Neckermann & Sally Sadoff, 2016. "The Behavioralist Goes to School: Leveraging Behavioral Economics to Improve Educational Performance," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 183-219, November.
    2. Ashley Miller, 2018. "College Scholarships as a Tool for Community Development? Evidence from the Kalamazoo Promise," Working Papers 1812, College of the Holy Cross, Department of Economics.
    3. Michelle Miller-Adams, 2009. "The Power of a Promise: Education and Economic Renewall in Kalamazoo," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number pop, November.
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    Cited by:

    1. Steven W. Hemelt & Kevin M. Stange, 2016. "Marginal Pricing and Student Investment in Higher Education," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 35(2), pages 441-471, April.
    2. 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.
    3. Bernal, Gloria L. & Penney, Jeffrey, 2019. "Scholarships and student effort: Evidence from Colombia’s Ser Pilo Paga program," Economics of Education Review, Elsevier, vol. 72(C), pages 121-130.
    4. 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.
    5. 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.
    6. Michelle Miller-Adams & Bridget Timmeney, 2013. "The Impact of the Kalamazoo Promise on College Choice: An Analysis of Kalamazoo Area Math and Science Center Graduates," Upjohn Working Papers 2013-014, W.E. Upjohn Institute for Employment Research.
    7. 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.
    8. Robert Bozick & Trey Miller, 2014. "In-State College Tuition Policies for Undocumented Immigrants: Implications for High School Enrollment Among Non-citizen Mexican Youth," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 33(1), pages 13-30, February.
    9. Timothy J. Bartik & Nathan Sotherland, 2015. "Migration and Housing Price Effects of Place-Based College Scholarships," Upjohn Working Papers 15-245, W.E. Upjohn Institute for Employment Research.
    10. Brad J. Hershbein, 2013. "A Second Look at Enrollment Changes after the Kalamazoo Promise," Upjohn Working Papers 13-200, W.E. Upjohn Institute for Employment Research.
    11. Ambrose Nnaemeka Omeje & Solomon Ogbonna Abugu, 2015. "The Impact of Scholarships on Students’ Academic Performance: A Case of Tertiary Institutions in Enugu State, Nigeria," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 4(2), pages 93-104, June.
    12. 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.

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    More about this item

    Keywords

    Academic output; educational incentives; universal scholarship; natural experiment; I21; I22;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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