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The Merits Of Universal Scholarships: Benefit-Cost Evidence From The Kalamazoo Promise, Timothy J. Bartik, Brad J. Hershbein, Marta Lachowska
The Merits Of Universal Scholarships: Benefit-Cost Evidence From The Kalamazoo Promise, Timothy J. Bartik, Brad J. Hershbein, Marta Lachowska
Brad J. Hershbein
As higher education costs rise, many communities have begun to adopt their own financial aid strategy: place-based scholarships for students graduating from the local school district. In this paper, we examine the benefits and costs 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, scholarship cost data, and projections of future earnings by education, we examine the Promise’s benefit-cost ratios for students differentiated by income, race, and gender. Although the average rate of return of the program is 11 percent, rates of return vary …
The Effects Of The Kalamazoo Promise Scholarship On College Enrollment, Persistence, And Completion, Timothy J. Bartik, Brad J. Hershbein, Marta Lachowska
The Effects Of The Kalamazoo Promise Scholarship On College Enrollment, Persistence, And Completion, Timothy J. Bartik, Brad J. Hershbein, Marta Lachowska
Brad J. Hershbein
We estimate the effects on postsecondary education outcomes of the Kalamazoo Promise, a generous, place-based college scholarship. We identify Promise effects using difference-in-differences, comparing eligible to ineligible graduates before and after the Promise’s initiation. According to our estimates, the Promise significantly increases college enrollment, college credits attempted, and credential attainment. Stronger effects occur for women.
The Effects Of The Kalamazoo Promise Scholarship On Post-Secondary Educational Attainment: Implications For The Benefits And Costs Of Generous And Universal College Subsidies, Marta Lachowska, Timothy Bartik, Brad Hershbein
The Effects Of The Kalamazoo Promise Scholarship On Post-Secondary Educational Attainment: Implications For The Benefits And Costs Of Generous And Universal College Subsidies, Marta Lachowska, Timothy Bartik, Brad Hershbein
Brad J. Hershbein
In order to study whether universal college scholarships can reduce inequality in education, we study one aspect of the Kalamazoo Promise that resembles a “natural experiment.” We use the fact that the surprise announcement of the scholarship created a large change in expected college tuition costs that varied across different groups of students based on past enrollment decisions. Using a differences-in-differences analysis, we compare the outcomes of Promise-eligible students to ineligible students, before and after the Promise. Outcomes studied include college enrollment, whether the student has obtained a college degree, and after-college earnings. We use the economical and racial diversity …