Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267243 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10010
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Financial aid decreases the cost of acquiring additional education. By using Italian administrative and survey data on financial aid recipients and exploiting sharp discontinuities in the amount of aid received, this paper identifies the causal effect of aid generosity on college performance and labor market outcomes. The results show that students with a higher cost of college earn more credits each year than those receiving higher financial aid. This gap generates a significant difference in the overall graduation time. No differences emerge in the GPA level or in the probability of working during college. After graduation, lower-aid recipients have a similar probability of continuing to study and of working after college as higher-aid beneficiaries. However, they secure a better job match in terms of working hours and payment but also in terms of skills matching.
Subjects: 
human capital
financial aid
labor market outcomes
regression discontinuity design
JEL: 
H75
I22
I26
J24
Document Type: 
Working Paper
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