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Crafting A Class: The Trade-Off Between Merit Scholarships And Enrolling Lower-Income Students, Ronald G. Ehrenberg, Liang Zhang, Jared M. Levin

Ronald G. Ehrenberg

[Excerpt] It is well known that test scores are correlated with students’ socio-economic backgrounds. Hence, to the extent that colleges are successful in “buying” higher test-score students, one should expect that their enrollment of students from families in the lower tails of the family income distribution should decline. However, somewhat surprisingly, there have been no efforts to test if this is occurring. Our paper presents such a test. While institutional-level data on the dollar amounts of merit scholarships offered by colleges and universities are not available, data are available on the number of National Merit Scholarship (NMS) winners attending an …