In-State Merit Aid and College Choice: New Jersey’s STARS Program as a Tuition Subsidy

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Abstract/Contents

Abstract
In this paper, I test how the implementation of the NJ STARS program has changed patterns of college enrollment choice among eligible students. Applying difference-in-difference logic to a college choice model, I analyze the variation in college enrollment choices of students who were eligible for NJ STARS scholarship aid and students who were similarly qualified but not eligible. In addition, I measure several indicators of college quality and other characteristics of the school(s) in which the students enrolled for post-estimation analysis. My conditional logit choice model shows that students eligible for NJ STARS are 1.7% more likely to enroll in an in-state institution and 61% more likely to enroll in an instate, public, two-year college. Based on the enrollment shifts, I also find that eligible students, on average, enroll in an institution with a 0.79% lower graduation rate and 0.71% less in instructional spending, indicating adverse effects of the program.

Description

Type of resource text
Date created May 2014

Creators/Contributors

Author Shah, Namir
Primary advisor Hoxby, Caroline
Degree granting institution Stanford University, Department of Economics

Subjects

Subject Stanford Department of Economics
Subject College choice
Subject college quality
Subject in-kind subsidy
Subject academic spending
Subject merit aid
Subject NJ STARS
Subject Peltzman hypothesis
Genre Thesis

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User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.

Preferred citation

Preferred Citation
Shah, Namir. (2014). In-State Merit Aid and College Choice: New Jersey’s STARS Program as a Tuition Subsidy. Stanford Digital Repository. Available at: https://purl.stanford.edu/rp096xy3597

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Stanford University, Department of Economics, Honors Theses

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