The Effects of Need-Based Financial Aid on Employment and Earnings: Experimental Evidence from the Fund for Wisconsin Scholars. Working Paper 27125

Autor/inn/en	Carlson, Deven E.; Schmidt, Alex; Souders, Sarah; Wolfe, Barbara L.
Institution	National Bureau of Economic Research
Titel	The Effects of Need-Based Financial Aid on Employment and Earnings: Experimental Evidence from the Fund for Wisconsin Scholars. Working Paper 27125
Quelle	(2020) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Student Financial Aid; Grants; College Students; Income; Employment; Grade Point Average; Two Year College Students; Technical Institutes; State Universities; State Aid; Wisconsin + Suchen Sie Ihr Suchwort? Finanzielle Beihilfe; Studienfinanzierung; Studienförderung; Grant; Collegestudent; Einkommen; Dienstverhältnis; Technische Fakultät; Staatliche Universität
Abstract	In this paper, we leverage the random assignment of a need-based financial aid grant offer--the Fund for Wisconsin Scholars (FFWS) grant--and several sets of administrative records to provide experimental evidence on the effects of the grant offer on students' in-state employment and earnings. For students in four-year universities, our results demonstrate significant employment reductions in the two years immediately following the aid offer as well as in the sixth, seventh, and eighth after receiving the randomized grant offer. We also find the aid offer to reduce these students' in-state earnings throughout the full eight-year period we study. However, we show that the aid offer increases student grade point average, suggesting that the employment and earnings reductions during students' in-college years are attributable to a reallocation of time and effort away from employment and toward coursework. For students' post-college years, we provide suggestive evidence that the reductions are attributable to a combination of two mechanisms: 1) Reduced loan debt offering greater financial flexibility when selecting among employment options, and 2) Offer-induced outstate migration. We find little evidence that the FFWS grant offer affects the labor market outcomes of students in two-year institutions, although the effects for students in technical colleges are significantly more positive than the effects for students in two-year colleges in the University of Wisconsin System. [Financial support for this research was provided by the Fund for Wisconsin Scholars (FFWS).] (As Provided).
Anmerkungen	National Bureau of Economic Research. 1050 Massachusetts Avenue, Cambridge, MA 02138-5398. Tel: 617-588-0343; Web site: http://www.nber.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01