Arbeitspapier

Replacing student grants with loans: Evidence from a Swedish policy reform

The Recruitment grant was a student aid policy that replaced the loans in the student aid system with grants for unemployed adults with low education. In this paper, I estimate the causal effects of repealing this policy on the educational attainment and subsequent labor market outcomes for the target population in a difference-in-differences framework. I find that the repeal reduced enrollment in adult education by 10 percent relative to the pre-repeal enrollment rate, and that the number of passed credits decreased by 29 percent. I also find that repeal increased unemployment by an average of 76 days over the eight-year follow-up, and decreased earnings by about 12,000 SEK ($1,300). Although there are substantial differences in these outcomes across subgroups, the repeal had significant adverse effects for the target population as a whole.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2022:7

Klassifikation
Wirtschaft
Personal Income, Wealth, and Their Distributions
Education and Inequality
Job, Occupational, and Intergenerational Mobility; Promotion
Thema
Student aid
Adult education
Difference-in-differences
Propensity scores

Ereignis
Geistige Schöpfung
(wer)
Brandén, Gunnar
Ereignis
Veröffentlichung
(wer)
Institute for Evaluation of Labour Market and Education Policy (IFAU)
(wo)
Uppsala
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Brandén, Gunnar
  • Institute for Evaluation of Labour Market and Education Policy (IFAU)

Entstanden

  • 2022

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