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Post-Baccalaureate Migration and Merit-Based Scholarships.

Maria D Fitzpatrick1, Damon Jones2

  • 1Cornell University and NBER.

Economics of Education Review
|February 22, 2017
PubMed
Summary
This summary is machine-generated.

Merit aid scholarships for higher education slightly boost in-state residency for students but do not increase the proportion of college graduates living in their home state. Most spending on these programs has minimal impact on skilled labor migration.

Keywords:
Brain DrainHigher EducationInterstate Migration

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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.