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Financial Aid and Higher Education Enrollment in Chile: A Government Policy Analysis

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  • Meneses, Francisco
  • Blanco, Christian

Abstract

This paper evaluates the impact of the Chilean government's nancial aid on college and vocational education enrollment. We found that there is an endogenous process in the application for nancial aid. To solve this problem we use a two-step procedure with instrumental variables (IV) and found that nancial aid increases the probability of students going to college by over 30%. In the case of vocational education, we found that being pre-selected for college nancial aid decreases the enrollment. However, vocational nancial aid increases that probability of enrollment. Therefore, students choose college education over vocational education when they have nancial aid for both. Theoretical conclusion and public policy recommendations are provided.

Suggested Citation

  • Meneses, Francisco & Blanco, Christian, 2010. "Financial Aid and Higher Education Enrollment in Chile: A Government Policy Analysis," MPRA Paper 23321, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:23321
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial aid; college enrollment; Chile; education; public policy.;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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