Estimating the effect of student aid on college enrollment: evidence from a government grant policy reform

Arbeitspapier

In this paper, we investigate the responsiveness of the demand for college to changes in student aid arising from a Danish reform. We separately identify the effect of aid from that of other observed and unobserved variables such as parental income. We exploit the combination of a kinked aid scheme and a reform of the student aid scheme to identify the effect of direct costs on college enrollment. To allow for heterogeneous responses due to borrowing constraints, we use detailed information on parents' assets. We find that enrollment is less responsive than found in other studies and that the presence of borrowing constraints only deters college enrollment to a minor extent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 3785

Classification and Topics

• Classification: Wirtschaft ; Educational Finance; Financial Aid
• Subject: College attendance ; educational subsidies ; reform ; kink regression ; Studienfinanzierung ; Reform ; Wirkungsanalyse ; Studierende ; Bildungsverhalten ; Dänemark

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nielsen, Helena Skyt ; Sørensen, Torben ; Taber, Christopher
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/35588
• URN: urn:nbn:de:101:1-20081126454
• Last update: 10.03.2025, 11:42 AM CET