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Need Based Aid From Selective Universities And The Achievement Gap Between Rich And Poor, Sunha Myong
Need Based Aid From Selective Universities And The Achievement Gap Between Rich And Poor, Sunha Myong
Research Collection School Of Economics
I study the role of need-based aid from selective universities in closing the achievement gap between rich and poor high school students. I focus on the incentive aspect of need-based aid that can change high school students’ effort choices. The impact of increasing need-based aid depends on the extent of borrowing constraints and how competition affects the relative performance of low- and high-income students. I develop a structural model of students’ learning, application, and admission processes, and estimate it with the Education Longitudinal Study of 2002, a nationally representative sample. I use a geographic variation in costs of attending selective …