Post-Baccalaureate Migration and Merit-Based Scholarships

Area of Science:

• Economics of Education
• Labor Economics
• Public Policy Analysis

Background:

• Policymakers utilize higher education subsidies to influence skilled labor migration patterns.
• Merit aid scholarships offer tuition assistance to high-achieving, in-state students.
• Understanding the impact of these scholarships on migration and attainment is crucial for policy evaluation.

Purpose of the Study:

• To investigate the effects of merit aid scholarship programs on the in-state migration and educational attainment of college students.
• To assess the efficiency of merit aid spending in achieving policy goals related to skilled labor retention.

Main Methods:

• Analysis of U.S. Census data for individuals aged 24-32 between 1990 and 2010.
• Econometric examination of the relationship between merit aid eligibility and in-state residency and college enrollment.
• Comparison of the magnitude of merit aid effects against the scale of program expenditure.

Main Results:

• Eligibility for merit aid slightly increases the likelihood of state natives residing in-state.
• Merit aid extends in-state college enrollment into the late twenties.
• Overall in-state residency combined with a Bachelor's degree (BA) attainment remains unchanged, with a potential decrease in total BA attainment.

Conclusions:

• Merit aid scholarships have a marginal impact on skilled labor migration and overall BA attainment.
• The observed effects are significantly smaller than the population exposed to these programs.
• A substantial portion of merit aid funding may be reallocating resources without altering key migration decisions.