Cookies?
Library Header Image
LSE Research Online LSE Library Services

Money for nothing: estimating the impact of student aid on participation in higher education

Dearden, Lorraine, Fitzsimons, Emla and Wyness, Gill (2014) Money for nothing: estimating the impact of student aid on participation in higher education. Economics of Education Review, 43. pp. 66-78. ISSN 0272-7757

[img]
Preview
PDF - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (690kB) | Preview
Identification Number: 10.1016/j.econedurev.2014.09.005

Abstract

Understanding how higher education (HE) finance policy can affect HE decisions is important for understanding how governments can promote human capital accumulation. Yet there is a severe lack of evidence on the effectiveness of student aid in encouraging HE participation outside of the US, and none at all for the UK. This paper exploits a reform that took place in the UK in 2004, when maintenance grants were introduced for students from low income families, having been abolished since 1999. This reform occurred in isolation of any other policy changes, and did not affect students from relatively better off families, making them a potential control group. We use a difference-in-difference framework to estimate the effect of the reform on HE undergraduate participation. We find a positive impact of maintenance grants, with a £1000 increase in grants leading to a 3.95 percentage point increase in participation.

Item Type: Article
Official URL: http://www.sciencedirect.com/science/journal/02727...
Additional Information: © 2014 The Authors
Divisions: Centre for Economic Performance
Subjects: L Education > LB Theory and practice of education > LB2300 Higher Education
JEL classification: I - Health, Education, and Welfare > I2 - Education > I21 - Analysis of Education
I - Health, Education, and Welfare > I2 - Education > I22 - Educational Finance
I - Health, Education, and Welfare > I2 - Education > I28 - Government Policy
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 07 Jan 2015 09:05
Last Modified: 19 Nov 2019 11:43
URI: http://eprints.lse.ac.uk/id/eprint/60603

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics