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Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program

Author

Listed:
  • Gabrielle Fack

    (UPF - Universitat Pompeu Fabra [Barcelona])

  • Julien Grenet

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Using comprehensive administrative data on France's single largest financial aid program, this paper provides new evidence on the impact of large-scale need-based grant programs on the college enrollment decisions, persistence and graduation rates of low-income students. We exploit sharp discontinuities in the grant eligibility formula to identify the impact of aid on student out-comes at different levels of study. We find that eligibility for an annual cash allowance of 1,500 euros increases college enrollment rates by up to 5 percent-age points. Moreover, we show that need-based grants have positive effects on student persistence and degree completion.

Suggested Citation

  • Gabrielle Fack & Julien Grenet, 2013. "Improving College Access and Success for Low-Income Students: Evidence from a Large Need-based Grant Program," PSE Working Papers halshs-00870546, HAL.
    • Handle: RePEc:hal:psewpa:halshs-00870546
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00870546
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Need-based grants; College enrollment; Student persistence; Degree completion;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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