The Effect of Grants on University Dropout Rates: Evidence from the Italian Case

Abstract

In this paper we evaluate the impact of need-based grants on university outcomes, using student-level administrative data from all Italian universities. We compare students receiving the grant to those who were eligible but not awarded the grant. We estimate the average treatment, using blocking on the propensity score with regression adjustment. We show that around one-third of student recipients of grants would have left university at the end of the first year in absence of the aid. Moreover, grants have a relevant impact on the probability of completing college education.

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