@article{f543d79cd9f746a7a75395c823a7e711,
title = "Model mis-specification in assessing the impact of financial aid on academic outcomes",
abstract = "The focus of the paper is the development of a novel conceptual framework that aims to remedy a critical mis-specification in prior research on the impact of financial aid on academic outcomes: the blending of the effect of aid eligibility with the influence of aid amounts on academic outcomes. To assess the impact of aid amounts received on college graduation while considering aid receipt status as an endogenous variable, I use the procedure of Instrumental Variable Probit. Empirical illustration of this model confirms that the interrelationships between aid eligibility and graduation mask the positive impact of financial aid on graduation.",
keywords = "College graduation, Endogenous variable, Financial aid, Instrumental variable probit",
author = "Sigal Alon",
note = "Funding Information: within 6-years of matriculation. Obviously, this is a very high graduation rate in comparison to national figures. Financial-aid information from the HERI file is derived from a questionnaire administered to college freshmen as part of the Cooperative Institutional Research Program.3 Important for my purposes, the HERI questionnaire asked students for the sources and amounts of financial aid that they received for college. Nineteen possible aid sources were listed, which I grouped into five main categories. Grants included Pell Grant, Supplemental Educational Opportunity Grant, state scholarship or grant, other college grant or scholarship, other private grant, and other government aid (e.g., ROTC, BIA, and GI); loans included Federal Guaranteed Student Loan, National Direct Student Loan, other college loan, and other loan; and work-study included college work-study grant. The work category included part-time job on campus, other part-time job while in college, or full-time job while in college. In doing so, I follow DesJardins et al. (1999; 2002) recommendation to include a measure of students{\textquoteright} campus employment aside from participating in a work-study program. This distinction is important for the current analysis as work-study is need-based and is administered through financial aid, whereas on-campus employment is not (DesJardins et al., 2002).",
year = "2005",
month = feb,
doi = "10.1007/s11162-004-6291-x",
language = "אנגלית",
volume = "46",
pages = "109--125",
journal = "Research in Higher Education",
issn = "0361-0365",
publisher = "Springer Netherlands",
number = "1",
}