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ProPelled: The Effects of Grants On Graduation, Earnings, and Welfare

The Effects of Grants on Graduation, Earnings, and Welfare

Posted: September 17, 2017
Authors: Jeffrey T. Denning, Benjamin M. Marx, Lesley J. Turner
Organizations: National Bureau of Economic Research, Texas Higher Education Coordinating Board, Texas Workforce Commission

We estimate the effect of grant aid on poor college students’ attainment and earnings using student-level administrative data from four-year public colleges in Texas. To identify these effects, we exploit a discontinuity in grant generosity as a function of family income. Eligibility for the maximum Pell Grant significantly increases degree receipt and earnings beginning four years after entry. 

ProPelled: The Effects of Grants On Graduation, Earnings, and Welfare