The Long Run Impacts of Merit Aid: Evidence from California's Cal Grant

Author/s: 
Eric Bettinger, Oded Gurantz, Laura Kawano, Bruce Sacerdote
Year of Publication: 
2016

We examine the impacts of being awarded a Cal Grant, among the most generous state merit aid programs. We exploit variation in eligibility rules using GPA and family income cutoffs that are ex ante unknown to applicants. Cal Grant eligibility increases degree completion by 2 to 5 percentage points in our reduced form estimates. Cal Grant also induces modest shifts in institution choice at the income discontinuity. At ages 28-32, Cal Grant receipt increases by three percentage points the likelihood of living in California at the income discontinuity, and raises earnings by four percentage points at the GPA discontinuity.

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APA Citation

Bettinger, E., Gurantz, O., Kawano, L., & Sacerdote, B. (2016). The Long Run Impacts of Merit Aid: Evidence from California's Cal Grant.

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