The Effect of Grants on University Drop-Out Rates: Evidence on the Italian Case

36 Pages Posted: 9 Jul 2019

See all articles by Francesca Modena

Francesca Modena

Bank of Italy

Enrico Rettore

University of Trento; IRVAPP; IZA

Giulia Tanzi

Bank of Italy

Multiple version iconThere are 2 versions of this paper

Date Written: September 27, 2018

Abstract

In this paper we measure the impact of need-based grants on university dropout rates in the first year, using student-level data from all Italian universities in the period 2003-2013. In Italy, some of the students eligible for grants do not receive them due to a lack of funds. We exploit this phenomenon to identify the causal effect of financial assistance. We find that need-based aid prevents students belonging to low-income families from dropping out from higher education; the estimated effect is sizeable. This evidence is robust to a variety of specifications and sample selection criteria.

Keywords: human capital, higher education, university dropout, student financial aid, treatment effect model, Italy

JEL Classification: I22, I23, C21, C35

Suggested Citation

Modena, Francesca and Rettore, Enrico and Tanzi, Giulia, The Effect of Grants on University Drop-Out Rates: Evidence on the Italian Case (September 27, 2018). Bank of Italy Temi di Discussione (Working Paper) No. 1193, September 2018, Available at SSRN: https://ssrn.com/abstract=3415672 or http://dx.doi.org/10.2139/ssrn.3415672

Francesca Modena

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Enrico Rettore

University of Trento ( email )

Via Verdi 26
Trento, 28122
Italy
+39 0461 281316 (Phone)

IRVAPP ( email )

Via Santa Croce 77
Trento, I-38122
Italy

IZA ( email )

Giulia Tanzi (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
21
Abstract Views
265
PlumX Metrics