Arbeitspapier
The Effect of Grants on University Drop-Out Rates: Evidence on the Italian Case
In this paper we evaluate the impact of need-based grants on university drop-out rates in the first year of enrollment, using student-level administrative data from all Italian universities in the period 2003-2013. We exploit the fact that not all eligible students receive financial aid due to limited resources to generate a treatment and a control group. Using this partition, we estimate the average treatment effect, i.e. the average effect on low income students, controlling for a set of observable characteristics by running regressions on blocks defined on the propensity score. Results point towards a sizeable effect of grants in reducing dropping out from higher education: around one third of these students would have left university in the first year in absence of the grants. This evidence is robust to a variety of specifications and sample selection criteria.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 12886
- Classification
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Wirtschaft
Educational Finance; Financial Aid
Higher Education; Research Institutions
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- Subject
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human capital
higher education
university dropout
student financial aid
blocking with regression adjustment
- Event
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Geistige Schöpfung
- (who)
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Modena, Francesca
Rettore, Enrico
Tanzi, Giulia
- Event
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Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
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2020
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Modena, Francesca
- Rettore, Enrico
- Tanzi, Giulia
- Institute of Labor Economics (IZA)
Time of origin
- 2020