Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180575 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11557
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper examines the impact of state merit-aid programs on the labor market attachment of high school-aged youths. The labor force participation rate of teenagers has fallen substantially in recent decades, coinciding with the introduction of merit-aid programs. These programs reduce the price of attending an in-state public college or university for high-achieving students and have the potential to influence students' allocation of time and effort between labor market activities, human capital development, and other forms of leisure. We examine the influence of these programs based on their generosity, both in the amount of aid provided to a recipient and the percent of students who are recipients of aid, and in their selectivity. Our results suggest that programs that are more selective reduce labor force participation, but are not a significant cause in the decline in teenage labor force participation in recent decades.
Subjects: 
merit aid
labor force participation
education
financial aid
JEL: 
J2
I2
Document Type: 
Working Paper

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