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Who Benefits Most? Examining the Heterogeneous Impact of a Need-Based Grant Program in Jamaica

Author

Listed:
  • Nicholas A. Wright

    (Department of Economics, Florida International University)

  • Akeem Carter

    (Department of Economics, Florida International University)

Abstract

This paper examines the heterogeneous impact of need-based grant funding on students' academic performance at a leading university in the Caribbean. In particular, using administrative student-level data, we examine the marginal effect of awarding a $500 US grant each year to needy student loan borrowers, estimating the grant effect across students' gender, past performance, high school rank, starting age, commuting status, field of study, living condition, consumption level, and per-capita income. Employing a novel IV-DID design, the study instruments for grant receipt by leveraging a policy reform that expanded access to college financing for students on welfare. We find robust evidence that the need-based grant significantly improved college students' outcomes, with the greatest benefits observed among on-campus residents, recent high-school graduates, males, younger students, higher achievers, and those with greater financial need.

Suggested Citation

  • Nicholas A. Wright & Akeem Carter, 2024. "Who Benefits Most? Examining the Heterogeneous Impact of a Need-Based Grant Program in Jamaica," Working Papers 2412, Florida International University, Department of Economics.
    • Handle: RePEc:fiu:wpaper:2412
    as

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    File URL: https://economics.fiu.edu/research/working-papers/2024/2412.pdf
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    References listed on IDEAS

    as
    1. Richard Murphy & Gill Wyness, 2023. "Testing Means-Tested Aid," Journal of Labor Economics, University of Chicago Press, vol. 41(3), pages 687-727.
    2. Jeffrey T. Denning & Benjamin M. Marx & Lesley J. Turner, 2019. "ProPelled: The Effects of Grants on Graduation, Earnings, and Welfare," American Economic Journal: Applied Economics, American Economic Association, vol. 11(3), pages 193-224, July.
    3. Anderson, Drew M., 2020. "When financial aid is scarce: The challenge of allocating college aid where it is needed most," Journal of Public Economics, Elsevier, vol. 190(C).
    4. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    5. Wright, Nicholas A., 2021. "Need-based financing policies, college decision-making, and labor market behavior: Evidence from Jamaica," Journal of Development Economics, Elsevier, vol. 150(C).
    6. Amanda Eng & Jordan Matsudaira, 2021. "Pell Grants and Student Success: Evidence from the Universe of Federal Aid Recipients," Journal of Labor Economics, University of Chicago Press, vol. 39(S2), pages 413-454.
    7. Eric Bettinger & Oded Gurantz & Laura Kawano & Bruce Sacerdote & Michael Stevens, 2019. "The Long-Run Impacts of Financial Aid: Evidence from California's Cal Grant," American Economic Journal: Economic Policy, American Economic Association, vol. 11(1), pages 64-94, February.
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    More about this item

    Keywords

    Need-Based Grant; Academic performance; GPA; Graduation;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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