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College ChoicesThe Economics of Where to Go, When to Go, and How to Pay for It$
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Caroline M. Hoxby

Print publication date: 2004

Print ISBN-13: 9780226355351

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226355375.001.0001

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The New Merit Aid

The New Merit Aid

(p.63) 2 The New Merit Aid
College Choices

Susan Dynarski

University of Chicago Press

This chapter examines how merit aid affects schooling decisions, using household survey data to measure the impact of new state programs. It begins with a case study of the Georgia Helping Outstanding Pupils Educationally (HOPE) Scholarship, the namesake and inspiration of many of the new state programs. It then extends the analysis to other states that now have broad-based programs similar to the HOPE Scholarship. In the empirical analysis, the chapter pays particular attention to how the effect of merit aid has varied by race and ethnicity. Merit aid might affect the decisions not only of students but also of institutions. Finally, the chapter briefly discusses the political economy of merit aid. It poses questions such as why it has arisen where it has and when it has, prospects for its continuation and growth, given the current, poor fiscal prospects of the states.

Keywords:   merit aid, survey data, state programs, schooling decisions, HOPE Scholarship, race, ethnicity, political economy

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