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