How Does Aid Matter? The Effect of Financial Aid on University Enrolment Decisions
Year: 2012
Type: preprint
Study design: Observational Study
Abstract: Using a counterfactual approach, this paper empirically investigates the impact of an\neducational programme recently introduced in the Province of Trento (North-East of Italy). The aim\nof the policy is to foster university enrolment of students from low-income families and to reduce\ninequalities in access to higher education. The programme, known as Grant 5B, consists in generous\nincentives: it targets the university students from low-income families and is awarded upon both merit\nand demonstrated financial need. We exploit data from an ad hoc survey conducted on a sample of\nupper secondary graduates and employ a regression discontinuity design to estimate the impact of the\nintervention on the university enrolment decisions. We find that the programme has no significant\neffect on enrolment rates, but it exerts a positive effect on redirecting students already bound for\nuniversity to enrol outside the place of residence. Relying on the relative risk aversion theory, we\nexplain why a relaxation of the eligibility rules based on merit might be more effective in reducing\nsocial inequalities in access to university.
Authors: Loris Vergolini, Nadir Zanini
Institution: Universitat de Barcelona
Language: English
Subfield: Education
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2104314907