Arbeitspapier
The merits of universal scholarships: Benefit-cost evidence from the Kalamazoo promise
As the costs of higher education rise, many communities have begun to adopt their own financial aid strategy: place-based scholarships for students graduating from the local school district. Some place-based scholarships impose merit- and/or need-based restrictions, while others require little more than residency and graduation. In this paper, we examine the reach and cost-effectiveness of the Kalamazoo Promise, one of the more universal and more generous place-based scholarships. Building upon estimates of the program's heterogeneous effects on degree attainment, individual-level scholarship cost data, and projections of future earning profiles by education, we examine the Promise's benefit-cost ratios for different types of students differentiated by income, race, and gender. Although the average break-even rate of return of the program is about 11 percent, rates of return vary greatly by group. The Promise has high returns for both low-income and non-low-income groups, for nonwhites, and for women, while benefit assumptions matter more for whites and men. Our results show that universal scholarships can reach many students and have a high rate of return, particularly for places with a high percentage of African American students.
- Sprache
-
Englisch
- Erschienen in
-
Series: Upjohn Institute Working Paper ; No. 16-252
- Klassifikation
-
Wirtschaft
Analysis of Education
Educational Finance; Financial Aid
Education and Inequality
- Thema
-
place-based scholarship
enrollment
college completion
natural experiment
difference-in-differences
financial aid policy
benefit-cost analysis
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bartik, Timothy J.
Hershbein, Brad J.
Lachowska, Marta
- Ereignis
-
Veröffentlichung
- (wer)
-
W.E. Upjohn Institute for Employment Research
- (wo)
-
Kalamazoo, MI
- (wann)
-
2016
- DOI
-
doi:10.17848/wp16-252
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Bartik, Timothy J.
- Hershbein, Brad J.
- Lachowska, Marta
- W.E. Upjohn Institute for Employment Research
Entstanden
- 2016
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