College Readiness Assessment
Category: Pathways to and Through Postsecondary
This paper evaluates long-run effects of state merit aid programs that subsidize in-state college attendance. Using national survey data on college enrollment and U.S. Census data, I exploit staggered program adoption across states. Merit aid shifts students from out-of-state to in-state institutions, which are on average relatively less selective. There is little evidence that these programs increase degree attainment or long-run in-state residence. For women, program exposure reduces post-college employment and earnings, while there is limited evidence of effects for men. Welfare analysis shows net losses for students and the implementing state, with additional negative fiscal spillovers to other jurisdictions.
Keywords
Merit Aid, College Enrollment, Labor Market Outcomes, Welfare Analysis
Education level
Document Object Identifier (DOI)
10.26300/jnxj-j727
