Early Commitment on Financial Aid and College Decision Making of Poor Students: Evidence from Randomized Evaluation in Rural China

Posted: 9 Apr 2013

See all articles by Chengfang Liu

Chengfang Liu

Chinese Academy of Sciences (CAS)

Linxiu Zhang

Chinese Academy of Sciences - Center for Chinese Agricultural Policy

Renfu Luo

Chinese Academy of Social Sciences (CASS) - Center for Chinese Agricultural Policy (CCAP)

Scott Rozelle

Stanford University - Freeman Spogli Institute of International Studies

Brian Sharbono

Stanford Woods Institute for the Environment

Jennifer Adams

Stanford University

Yaojiang Shi

Shaanxi Normal University

Ai Yue

Northwest University (China)

Li Hongbin

Tsinghua University

Xiaobing Wang

Chinese Academy of Sciences (CAS)

Thomas Glauben

Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Date Written: January 14, 2011

Abstract

Many educational systems have struggled with the question about how best to give out financial aid. In particular, if students do not know the amount of financial aid that they can receive before they make a decision about where to go to college and what major to study, it may distort their decision. This study utilizes an experiment (implemented by the authors as a Randomized Control Trial) to analyze whether or not an alternative way of providing financial aid — by providing an early commitment on financial aid during the student’s senior year of high school instead of after entering college — affects the college decision making of poor students in rural China. We find that if early commitments are made early enough; and they are large enough, students will make less distorting college decisions.

Keywords: Student financial aid, College decision, Rural China

Suggested Citation

Liu, Chengfang and Zhang, Linxiu and Luo, Renfu and Rozelle, Scott and Sharbono, Brian and Adams, Jennifer and Shi, Yaojiang and Yue, Ai and Hongbin, Li and Wang, Xiaobing and Glauben, Thomas, Early Commitment on Financial Aid and College Decision Making of Poor Students: Evidence from Randomized Evaluation in Rural China (January 14, 2011). Economics of Education Review, Vol. 30, 627–640. Available at SSRN: https://ssrn.com/abstract=2247091

Chengfang Liu (Contact Author)

Chinese Academy of Sciences (CAS) ( email )

52 Sanlihe Rd.
Datun Road, Anwai
Beijing, Xicheng District 100864
China

Linxiu Zhang

Chinese Academy of Sciences - Center for Chinese Agricultural Policy ( email )

Anwai, Beijing, 100101
China

Renfu Luo

Chinese Academy of Social Sciences (CASS) - Center for Chinese Agricultural Policy (CCAP) ( email )

Building 917, Datun Road
Beijing 100101
China

Scott Rozelle

Stanford University - Freeman Spogli Institute of International Studies ( email )

Stanford, CA 94305
United States

Brian Sharbono

Stanford Woods Institute for the Environment ( email )

Stanford, CA 94305
United States

Jennifer Adams

Stanford University ( email )

Stanford, CA 94305
United States

Yaojiang Shi

Shaanxi Normal University ( email )

Chang'an Chang'an District
199 South Road
Xi'an, Shaanxi Province 710062
China

Ai Yue

Northwest University (China) ( email )

229 Taibai North Rd
Beilin
Xian, Shaanxi
China

Li Hongbin

Tsinghua University ( email )

Beijing, 100084
China

Xiaobing Wang

Chinese Academy of Sciences (CAS) ( email )

52 Sanlihe Rd.
Datun Road, Anwai
Beijing, Xicheng District 100864
China

Thomas Glauben

Leibniz Institute of Agricultural Development in Transition Economies (IAMO) ( email )

Theodor-Lieser-Str.2
Halle, 06120
Germany

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