Abstract
The failure to account for group differences in responsiveness to financial aid is a primary shortcoming of existing higher education research, and compromises the explanatory power of theories and models. Even more importantly, it limits the ability of policymakers and practitioners to achieve the important goals of increased college success and reduced achievement gaps. In this chapter, we identify and explore concepts from social sciences disciplines which hold promise in terms of informing future theoretical developments in the field. Drawing primarily on the work of behavioral economists, and economic sociologists, we discuss concepts such as aversion to risk, work centrality, ambiguity aversion, and consistency theory which may serve to illuminate several unexplained anomalies in prior empirical research. We also describe the methodological problems plaguing the study of financial aid and argue that tests of existing theories, as well as those we propose here, require research that addresses selection bias in who receives aid. We then describe other aspects of future research critical to the testing of these concepts.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Adelman, C. (1999). Answers in the tool box: Academic intensity, attendance patterns, and bachelor's degree attainment. Washington, DC: US Department of Education.
Adelman, C. (2006). Answers in the tool box revisited. Washington, DC: US Department of Education.
Adelman, C. (2007). Do we really have a college access problem? Change July/August, 48.
Alon, S. (2005). Model mis-specification in assessing the impact of financial aid on academic outcomes. Research in Higher Education, 46(1), 109–125.
Alon, S. (2007). The influence of financial aid in leveling group differences in graduating from elite institutions. Economics of Education Review, 26, 296–311.
Angrist, J., Lang, D., & Oreopoulos, P. (2007). Incentives and services for college achievement: Evidence from a randomized trial (IZA Discussion Paper No. 3134). Retrieved June 13, 2008, from http://ssrn.com/abstract = 1032118
Argys, L., & Rees, D. (2008). Searching for peer group effects: A test of the contagion hypothesis. The Review of Economics and Statistics, 90(3), 442–458.
Ashenfelter, O., Harmon, C., & Oosterbeek, H. (1999). A review of estimates of the schooling/ earnings relationship, with tests for publication bias. Labour Economics, 6(4), 453–470.
Astin, H. S., & Cross, K. P. (1979). Student financial aid and persistence in college. Los Angeles, CA: Higher Education Research Institute.
Attewell, P., & Lavin, D. (2007). Passing the torch. New York: Russell Sage Foundation.
Avery, C., & Kane, T. J. (2004). Student perceptions of college opportunities: The Boston COACH program. Chapter 8. In Caroline Hoxby (Ed.), College choices: Economics of where to go, when to go, and how to pay for it. Chicago, IL: University of Chicago Press.
Barnett, W. S. (1992). Benefits of compensatory preschool education. Journal of Human Resources, 27(2), 279–312.
Barnett, W. S. (1995). Long-term effects of early childhood programs on cognitive and school outcomes. The Future of Children, 5(3), 25–50.
Barnett, W. S., & Masse, L. N. (2007). Comparative benefit-cost analysis of the Abecedarian program and its policy implications. Economics of Education Review, 26(1), 113–125.
Baum, S., & Payea, K. (2004). Education pays: The benefits of higher education for individuals and society. New York: College Board.
Beattie, I. (2002). Are all ‘adolescent econometricians’ created equal? Racial, class and gender differences in college enrollment. Sociology of Education, 75(1), 19–43.
Becker, G. S. (1975). Human capital: A theoretical and empirical analysis with special reference to education (2nd ed.). New York: National Bureau of Economic Research.
Becker, W. E. (2004). Omitted variables and sample selection problems in studies of college-going decisions. In C. Teddlie & E. A. Kemper (Series Eds.) and E. P. St. John (Vol. Ed.), Readings on equal education, Vol. 19. Public policy and college access: Investigating the federal and state roles in equalizing postsecondary opportunity. New York: AMS Press.
Belfield, C. R., Nores, M., Barnett, S., & Schweinhart, L. (2006). The High/Scope Perry Preschool Program: Cost-benefit analysis using data from the age-40 followup. Journal of Human Resources, 41(1), 162–190.
Ben-Porath, Y. (1967). The production of human capital and the life cycle of earnings. Journal of Political Economy, 75(4, pt. 1), 352–365.
Berea College. (2007). Fact book. Retrieved April 22, 2008, from www.berea.edu/ira/documents/ factbook0708a.pdf
Berger, J. B. (2000). Optimizing capital, social reproduction, and undergraduate persistence: A sociological perspective. In J. M. Braxton (Ed.), Reworking the student departure puzzle (pp. 95–124). Nashville, TN: Vanderbilt University Press.
Bettinger, E. (2004). How financial aid affects persistence. In C. Hoxby (Ed.), College choices: The economics of where to go, when to go, and how to pay for it. Chicago, IL: University of Chicago Press.
Betts, J. R. (1996). What do students know about wages? Evidence from a survey of undergraduates. Journal of Human Resources, 31(1), 27–56.
Blanchflower, D. G., & Oswald, A. J. (2004). Well-being over time in Britain and the USA. Journal of Public Economics, 88(7), 1359–1386.
Blinder, A. S., & Weiss, Y. (1976). Human capital and labor supply: A synthesis. Journal of Political Economy, 84(3), 449–472.
Bound, J., & Turner, S. (2002). Going to war and going to college: Did World War II and the G.I. Bill increase educational attainment for returning veterans? Journal of Labor Economics, 20, 784–815.
Bound, J., & Turner, S. (2006). Cohort crowding: How resources affect collegiate Attainment. NBER WP No. 12424.
Bound, J., Lovenheim, M., & Turner, S. (2007). Understanding the increased time to baccalaureate degree. Working Paper. Accessed August 22, 2008 from http://people.virginia.edu/~set5h/ SarahPapers/jb_ml_st_time2ba.pdf
Bozick, R. (2007). Making it through the first year of college: The role of students’ economic resources, employment and living arrangements. Sociology of Education, 80, 261–285.
Breen, R., & Goldthorpe, J. (1997). Explaining educational differentials: Towards a formal rational action theory. Rationality and Society, 9, 275–305.
Breen, R., & Yaish, M. (2006). Testing the Breen-Goldthorpe model of educational decision making. Chapter 9. In S. Morgan et al. (Eds.), Mobility and inequality. Stanford, CA: Stanford University Press.
Brock, T., & Richburg-Hayes, L. (2006). Paying for persistence: Early results of a Louisiana scholarship program for low-income parents attending community college. New York: MDRC
Burdman, P. (2005). The student debt dilemma: Debt aversion as a barrier to college access (Research and Occasional Paper Series, CSHE.13.05). Berkeley, CA: University of California, Berkeley, Center for Studies in Higher Education.
Burgdorf, B. D., & Kostka, K. (2006). Eliminating complexity and inconsistency in federal financial aid programs for higher education students: Towards a more strategic approach (Issue Paper #7). Washington, DC: US Department of Education, Secretary of Education's Commission on the Future of Higher Education.
Cabrera, A. F., & La Nasa, S. M. (2000). Understanding the college choice of disadvantaged students. San Francisco, CA: Jossey-Bass.
Cabrera, A. F., & La Nasa, S. M. (2001). On the path to college: Three critical tasks facing America's disadvantaged. Research in Higher Education, 42(2), 119–150.
Cabrera, A. F., Stampen, J. O., & Hansen, W. L. (1990). Exploring the effects of ability to pay on persistence in college. The Review of Higher Education, 13(3), 303–336.
Cabrera, A. F., Nora, A., & Castañeda, M. B. (1992). The role of finances in the persistence process: A structural model. Research in Higher Education, 33, 571–593.
Cabrera, A. F., Nora, A., & Castañeda, M. B. (1993). College persistence: Structural equations modeling test of an integrated model of student retention. Journal of Higher Education, 64,123–139.
Cabrera, A. F., Burkum, K., & La Nasa, S. M. (2003). Pathways to a four-year degree: Determinants of degree completion among socioeconomically disadvantaged students. Paper presented at the Association for the Study of Higher Education, Portland, OR.
Cameron, S., & Heckman, J. J. (1998). Life cycle schooling and dynamic selection bias: Models and evidence for five cohorts of American males. Journal of Political Economy, 106(2), 262–333.
Cameron, S. V., & Heckman, J. J. (2001). The dynamics of educational attainment for Black, Hispanic, and white males. Journal of Political Economy, 109(3), 455–499.
Cameron, S. V., & Taber, C. (2004). Estimation of educational borrowing constraints using returns to schooling. Journal of Political Economy, 112(1), 132–182.
Campbell, F. A., Ramey, C. T., Pungello, E., Sparling, J., & Miller-Johnson, S. (2002). Early childhood education: Young adult outcomes from the Abecedarian Project. Applied Developmental Science, 6(1), 42–57.
Card, D. (1999). The causal effect of education on earnings. In O. Ashenfelter & D. Card (Eds.), Handbook of labor economics, Vol. 3 (pp. 1801–1863). Amsterdam: Elsevier.
Card, D. (2001). Estimating the return to schooling: Progress on some persistent econometric problems. Econometrica, 69(5), 1127–1160.
Card, D., & Krueger, A. B. (1992). Does school quality matter? Returns to education and the characteristics of public schools in the United States. Journal of Political Economy, 100(1), 1–40.
Carneiro, P., & Heckman, J. J. (2002). Evidence on credit constraints in post-secondary schooling. Economic Journal, 112, 705–734.
Carneiro, P., & Heckman, J. J. (2003). Human capital policy. In J. Heckman & A. Krueger (Eds.), Inequality in America: What role for human capital policies? (pp. 77–239). Cambridge, MA: MIT Press.
Carneiro, P., Hansen, K. T., & Heckman, J. J. (2003). Estimating distributions of treatment effects with an application to the returns to schooling and measurement of the effects of uncertainty on college choice. International Economic Review, 44(2), 361–422.
Carruthers, B. G. (2005). The sociology of money and credit. In N. Smelser and R. Swedberg (Eds.), The handbook of economic sociology (pp. 355–378). New York: Russell Sage Foundation.
Carruthers, B. G., & Babb, S. (1996). The color of money and the nature of value: Greenbacks and gold in postbellum America. American Journal of Sociology, 101, 1556–1591.
Cellini, S. R. (2008). Causal inference and omitted variable bias in financial aid research: Assessing solutions. Review of Higher Education, 31(3), 329.
Chen, R. (2008). Financial aid and student dropout in higher education: A heterogeneous research approach. Higher education: Handbook of theory and research, Vol. 23
Choy, S. P. (2004). Findings from the condition of education 2004: Paying for college: Changes between 1990 and 2000 for full-time dependent undergraduates (NCES 2004–075). Washington, DC: National Center for Education Statistics, Institute of Education Sciences, US Departmentof Education.
Christian, M. (2007). Liquidity constraints and the cyclicality of college enrollment in the United States. Oxford Economic Papers, 59, 141–169.
Christie, H., Munro, M., & Rettig, H. (2001). Making ends meet: Student incomes and debt. Studies in Higher Education, 26(3), 363–383.
Clydesdale, T. (2007). The first year out: Understanding American teens after high school. Chicago, IL: University of Chicago Press.
Cohn, E., & Geske, T. G. (1992). Private nonmonetary returns to investment in higher education. In W. Becker & D. Lewis (Eds.), The economics of American higher education (pp. 173–195). Boston, MA: Kluwer.
Cunha, F., & Heckman, J. J. (2007a). The technology of skill formation. American Economic Review, 97(2), 31–47.
Cunha, F., & Heckman, J. J. (2007b). Identifying and estimating the distributions of ex post and ex ante returns to schooling. Labour Economics, 14, 870–893.
Cunha, F., Heckman, J., & Navarro, S. (2005). Separating uncertainty from heterogeneity in life cycle earnings. Oxford Economic Papers, 57, 191–261.
Cunha, F., Heckman, J. J., Lochner, L., & Masterov, D. V. (2006). Interpreting the evidence on life cycle skill formation. In E. Hanushek & F. Welch (Eds.), Handbook of the economics of education, Vol. 1 (pp. 697–812). Amsterdam: Elsevier.
Currie, J. (2001). Early childhood education programs. Journal of Economic Perspectives, 15(2), 213–238.
Currie, J., & Thomas, D. (1995). Does Head Start make a difference. American Economic Review, 85(3), 341–364.
Currie, J., & Thomas, D. (2000). School quality and the longer-term effects of Head Start. Journal of Human Resources, 35(4), 755–774.
Curs, B., & Singell, L. (2002). An analysis of the application and enrollment processes for in-state and out-of-state students at a large public university. Economics of Education Review, 21, 111–124.
Davies, E., & Lea, S. E. G. (1995). Student attitudes to student debt. Journal of Economic Psychology, 16, 663–679.
DesJardins, S. L., & Toutkoushian, R. (2006). Are students really rational? The development of rational thought and its application to student choice. Higher education: Handbook of theory and research, Vol. 20.
DesJardins, S. L., Ahlburg, D. A., & McCall, B. P. (2002). Simulating the longitudinal effects of changes in financial aid on student departure from college. Journal of Human Resources, 37(3), 653–679.
DesJardins, S. L., Ahlburg, D. A., & McCall, B. P. (2006). An integrated model of application, admission, enrollment, and financial aid. Journal of Higher Education, 77(3), 381–429.
Dominitz, J., & Manski, C. F. (1996). Eliciting student expectations of the returns to schooling. Journal of Human Resources, 31(1), 1–26.
Dowd, A. (2008). Dynamic interactions and intersubjectivity: Challenges to causal modeling in studies of college student debt. Review of Educational Research, 78(2), 232–259.
Dynarski, S. (2002). The behavioral and distributional implications of subsidies for college. American Economic Review, 92 (2), 279–285.
Dynarski, S. (2003). Does aid matter? Measuring the effect of student aid on college attendance and completion. American Economic Review, 93(1), 279–288.
Dynarski, S. (2005). Building the stock of college-educated labor (NBER Working Paper no. 11604). Cambridge, MA: National Bureau of Economic Research.
Dynarski, S. M., & Scott-Clayton, J. E. (2006). The cost of complexity in federal student aid: Lessons from optimal tax theory and behavioral economics. National Tax Journal, 59(2), 319–356.
Ellwood, D., & Kane, T. J. (2000). Who is getting a college education: Family background and the growing gaps in enrollment. In S. Danziger & J. Waldfogel (Eds.), Securing the future: Investing in children from birth to college (pp. 283–324). New York: Russell Sage Foundation.
Feldman, D., & Doerpinghaus, H. (1992). Patterns of part-time employment. Journal of Vocational Behavior, 41, 282–294.
Freeman, R. (1976). The overeducated American. New York: Academic.
Gamoran, A., Porter, A. C., Smithson, J., & White, P. A. (1997). Upgrading high school mathematics instruction: Improving learning opportunities for low-achieving, low-income youth. Educational Evaluation and Policy Analysis, 19(4), 325–338.
Garces, E., Thomas, D., & Currie, J. (2002). Longer-term effects of Head Start. American Economic Review, 92(4), 999–1012.
Ghez, G., & Becker, G. S. (1975). The allocation of time and goods over the life cycle. New York: Columbia University Press.
Goldrick-Rab, S. (with D. F. Carter and R. W. Wagner). (2007). What higher education has to say about the transition to college. Teachers College Record, 109(10 2444–2481).
Goldrick-Rab, S., and Roksa, J. (2008). A federal agenda for promoting student success and degree completion. Washington, DC: Center for American Progress.
Goldscheider, F. K., & Goldscheider, C. (1994). Leaving and returning home in 20th century America. Population Bulletin, 48, 1–35.
Griliches, Z. (1977). Estimating the returns to schooling: Some econometric problems. Econometrica, 45(1), 1–22.
Grodsky, E., & Jones, M. (2006). Real and imagined barriers to college entry: Perceptions of cost. Social Science Research, 36, 745–766.
Grossman, M. (2006). Education and nonmarket outcomes. In E. Hanushek & F. Welch (Eds.), Handbook of the economics of education, Vol. 1 (pp. 577–633). Amsterdam: Elsevier.
Hahn, A., Leavitt, T., & Aaron, P. (1994). Evaluation of Quantum Opportunities Program: Did the program work? Wlatham, MA: Brandeis University.
Hansen, W. L. (1983). Impact of student aid on access. In J. Froomkin (Ed.), The crisis in higher education. New York: Academy of Political Science.
Hansen, W. L., & Weisbrod, B. A. (1969). The distribution of costs and direct benefits of public higher education: The case of California. Journal of Human Resources, 4(2), 176–191.
Harmon, C., Oosterbeek, H., & Walker, I. (2003). The returns to education: Microeconomics. Journal of Economic Surveys, 17(2), 115–155. Harris, D. (forthcoming-a). Toward policy-relevant benchmarks for interpreting effects sizes: Combining effects with costs. Educational Evaluation and Policy Analysis. Harris, D. (forthcoming-b). How do school peers influence student educational outcomes? Theory and evidence from economics and other social sciences. Teachers College Record.
Haskins, R. (2008). Education and economic mobility. In J. Isaacs, I. Sawhill, & R. Haskins (Eds.), Getting ahead or losing ground: Economic mobility in America. Washington, DC: The Brookings Institution.
Haveman, R. H., & Smeeding, T. (2006). The role of education in social mobility. Future of Children, 16(2), 125–150.
Haveman, R. H., & Wilson, K. (2007). Access, matriculation, and graduation. Chapter 2. In S. Dickert-Conlin & R. Rubenstein (Eds.), Economic inequality and higher education. New York: Russell Sage Foundation.
Haveman, R. H., & Wolfe, B. L. (1984). Schooling and economic well-being: The role of nonmar-ket effects. Journal of Human Resources, 19(3), 377–407.
Hayford, Sarah, & Furstenberg, Frank. “Is 30 the New 20? Trends in Age Distribution of Problem Behaviors in Young Adulthood” Paper presented at the annual meeting of the American Sociological Association, Marriott Hotel, Loews Philadelphia Hotel, Philadelphia, PA, Aug 12, 2005 <Not Available>. 2008-12-12 <http://www.allacademic.com/meta/p22229_index.html>
Hearn, J. C., & Longanecker, D. (1985). Enrollment effects of alternative postsecondary pricing policies. Journal of Higher Education, 56(5), 485–508.
Heckman, J., Layne-Farrar, A., & Todd, P. (1996). Human capital pricing equations with an application to estimating the effect of schooling quality on earnings. Review of Economics and Statistics, 78(4), 562–610.
Heckman, J. J. (1976). A life-cycle model of earnings, learning, and consumption. Journal of Political Economy, 84(4), S11–S44.
Heckman, J. J., Lochner, L. J., & Todd, P. E. (2006). Earnings functions, rates of return, and treatment effects. In E. Hanushek & F. Welch (Eds.), Handbook of the economics of education, Vol. 1 (pp. 307–458), Amsterdam: Elsevier.
Heckman, J. J., Lochner, L. J., & Todd, P. E. (2008). Earnings functions and rates of return. Journal of Human Capital, 2(1), 1–31.
Heller, D. E. (1997). Student price response in higher education: An update to Leslie and Brinkman. Journal of Higher Education, 68(6), 624–659.
Heller, D. E. (1998). A comparison of the tuition price and financial aid responsiveness offirst-time enrollees and continuing college students (Institute for Higher Education Law and Governance Monograph Series, #98–2). Houston, TX: University of Houston Law Center.
Heller, D. E. (1999). Racial equity in college participation: African American students in the United States. Review of African American Education, 1(1), 5–29.
Heller, D. E. (2004). NCES research on college participation: A critical analysis. In C. Teddlie and E. A. Kemper (Series Eds.) and E. P. St. John (Vol. Ed.), Readings on equal education, Vol. 19. Public policy and college access: Investigating the federal and state roles in equalizing postsecondary opportunity. New York: AMS Press.
Heller, D. E. (2006). Merit aid and college access. Madison, WI: Wisconsin Center for the Advancement of Postsecondary Education.
Herzog, S. (2008). Estimating the influence of financial aid on student retention: A discrete-choice propensity score-matching model (Education Working Paper Archive). Reno, NV: University of Nevada, Reno.
Horn, L., & Berger, R. (2004). College persistence on the rise? Changes in 5-year degree completion and postsecondary persistence rates between 1994 and 2000 (NCES 2005–156). US Department of Education, National Center for Education Statistics. Washington, DC: US Government Printing Office.
Hossler, D., Schmit, J., & Vesper, N. (1999). Going to college: How social, economic, and educational factors influence the decisions students make. Baltimore, MD: Johns Hopkins Press.
Hout, M. (1996). The politics of mobility. In A. Kerckhoff (Ed.), Generating social stratification: Toward a new research agenda. Boulder, CO: Westview Press.
Hryshko, D., Luengo-Prado, M., & Sorensen, B. (2007). Childhood determinants of risk aversion: The long shadow of compulsory education. Unpublished Manuscript.
Hu, S., & St. John, E. P. (2001). Student persistence in a public higher education system: Understanding racial and ethnic differences. The Journal of Higher Education, 72(3), 265–286.
Ikenberry, S. O., & Hartle, T. W. (1998). Too little knowledge is a dangerous thing: What the public thinks and knows about paying for college. Washington, DC: American Council on Education.
Iwai, S. A., & Churchill, W. D. (1982). College attrition and the financial support systems of students. Research in Higher Education, 17(2), 105–113.
Jensen, E. L. (1981). Student financial aid and persistence in college. Journal of Higher Education, 52, 280–294.
Jensen, E. L. (1984). Student financial aid and degree attainment. Research in Higher Education, 20(l), 117–127.
Johnson, M. K. (2001a). Change in job values during the transition to adulthood. Work and Occupations, 28, 315–345.
Johnson, M. K. (2001b). Job values in the young adult transition: Stability and change with age. Social Psychology Quarterly, 64, 297–317.
Johnson, M. K. (2002). Social origins, adolescent experiences, and work value trajectories during the transition to adulthood. Social Forces, 80, 1307–1341.
Johnson, M. K., & Elder, G. E. (2002). Educational pathways and work value trajectories. Sociological Perspectives, 45, 113–138.
Johnson, A. (1999). Sponsor-A-Scholar: Long-term impacts of a youth mentoring program on student performance. Princeton, NY: Mathematica Policy Research.
Kahne, J., & Bailey, K. (1999). The role of social capital in youth development: The case of ‘I Have a Dream’ programs. Educational Evaluation and Policy Analysis, 21(3), 321–343.
Kaltenbaugh, L. S., St. John, E. P., & Starkey, J. B. (1999). What difference does tuition make? An analysis of ethnic differences in persistence. Journal of Student Financial Aid, 29(2), 21–31.
Kane, T. J. (1994). College attendance by blacks since 1970: The role of college cost, family background and the returns to education. Journal of Political Economy, 102(5), 878–911.
Kane, T. (2001a). College going and inequality: A literature review Russell Sage Foundation working paper. Accessed August 21, 2008 from http://www.russellsage.org/programs/main/ inequality/050516.322671/.
Kane, T. (2001b). Assessing the American financial aid system: What we know, what we need to know. In M. Devlin (Ed.), Forum futures 2001: Exploring the future of higher education (pp. 63–66). Cambridge, MA: Forum for the Future of Higher Education, 2001. Retrieved June 30, 2008 from http://net.educause.edu/ir/library/pdf/ffp0114s.pdf
Kane, T. (2004). Evaluating the impact of the D.C. tuition assistance grant program. National Bureau of Economic Research Working Paper No. 10658.
Karoly, L. A., Greenwood, P. W., Everingham, S. S., Houbé, J., Kilburn, M. R., Rydell, C. P., et al. (1998). Investing in our children: What we know and don't know about the costs and benefits of early childhood interventions. Santa Monica, CA: RAND.
Killingsworth, M. R. (1983). Labor Supply. Cambridge: Cambridge University Press.
Killingsworth, M. R., & Heckman, J. J. (1986). Female labor supply: A survey. In O. Ashenfelter & R. Layard (Eds.), Handbook of labor economics, Vol. 1. Amsterdam: Elsevier.
Kim, D. (2004). The effect of financial aid on students’ college choice: Differences by racial groups. Research in Higher Education, 45(1), 43–70.
King, J. (2002). Crucial choices: How students' financial decisions affect their academic success. Washington, DC: American Council on Education.
Kurlaender, M., Mehta, J., Dynarski, S., Jencks, C., Kane, T., & Scott-Clayton, J. (2007). Strategies for increasing college completion: An experimental approach. Cambridge, MA: New Vision.
Landy, F., & Conte, J. (2007). Work in the twenty-first century: An introduction to industrial and organizational psychology. Malden, MA: Blackwell.
Lawrence, E. C. (1991). Poverty and the rate of time preference: Evidence from panel data. Journal of Political Economy, 99, 54–77.
Lattimore, C. B., Mihalic, S. F., Grotpeter, J. K., & Taggart, R. (1998). Blueprints for violence prevention: The Quantum Opportunities Program. Boulder, CO: Institute of Behavioral Science.
Lee, V. E., & Loeb, S. (1995). Where do Head Start attendees end up? One reason why preschool effects fade out. Educational Evaluation and Policy Analysis, 17(1), 62–82.
Leslie, L. L., & Brinkman, P. T. (1987). Student price response in higher education: The student demand studies. Journal of Higher Education, 58(2), 181–204.
Levine, A., & Nidiffer, J. (1996). Beating the odds: How the poor get to college. San Francisco, CA: Jossey-Bass.
Light, A., & Strayer, W. (2000). Determinants of college completion: School quality or student ability? Journal of Human Resources, 35(2), 299–332.
Lisenmeier, D., Rosen, H., & Rouse, C. (2006). Financial aid packages and college enrollment decisions: An econometric case study. The Review of Economics and Statistics, 88(1), 126–145.
Lobel, S. (1991). Allocation of investment in work and family roles: Alternative theories and implications for research.Academy of Management Review, 16(3), 507–521.
Long, B. T. (2008). What is known about the impact of financial aid? Implications for policy. National Center for Postsecondary Research(NCPR) Working Paper. Accessed August 22, 2008 at http://www.postsecondaryresearch.org/i/a/document/6963_LongFinAid.pdf
Lorence, J., & Mortimer, J. (1985). Job involvement through the life course. American Sociological Review, 50, 618–638.
Lucas, S. (2001). Effectively maintained inequality: Education transitions, track mobility, and social background effects. American Journal of Sociology, 106(6), 1642–1690.
Manski, C. (1993). Adolescent econometricians: How do youth infer the returns to schooling? In C. Clotfelter and M. Rothschild, Studies of supply and demand in higher education (pp. 43–57). Chicago, IL: University of Chicago Press.
McDonough, P., & Calderone, S. (2006). The meaning of money: Perceptual differences between college counselors and low-income families about college costs and financial aid. American Behavioral Scientist. 49 (12): 1703–1718.
McMillion, R. (2005). The role of work and loans in paying for an undergraduate Education: Observations from the 2003–2004 National Postsecondary Student Aid Study. TG Research and Analytic Services. Retrieved July 2, 2008 from http://www.tgslc.org/pdf/HEA_Work_ Loans.pdf
Metcalf, H. (2005). Paying for university: The impact of increasing costs on student employment, debt, and satisfaction. National Institute Economic Review, 191, 106–117.
Mortimer, J. (2003). Working and growing up in America. Cambridge, MA: Harvard University Press.
National Research Council (1999). The changing nature of work: Implication for occupational analysis. Washington, DC.
Nora, A., & Cabrera, A. F. (1996). The role of perceptions of prejudice and discrimination on the adjustment of minority students to college. Journal of Higher Education, 67(2), 119–148.
Nora, A., & Rendon, L. (1990). Differences in mathematics and science preparation and participation among of minority students to college. Journal of Higher Education, 67(2), 119–148.
Nora, A., Cabrera, A. F., Hagedorn, L., & Pascarella, E. T. (1996). Differential impacts of academic and social experiences on college-related behavioral outcomes across different ethnic and gender groups at four-year institutions. Research in Higher Education, 37(4), 427–452.
Nora, A., Barlow, L., & Crisp, G. (2006). Examining the tangible and psychosocial benefits of financial aid with student access, engagement, and degree attainment. American Behavioral Scientist, 49(12), 1636–1651.
Odean, T. (1998). Are investors reluctant to realize their losses? Journal of Finance, LIII, 1775–1798.
Oden, S., Schweinhart, L. J., Weikart, D. P., Marcus, S. M., & Xie, Y. (2000). Into adulthood: A study of the effects of Head Start. Ypsilanti, MI: High/Scope Press.
Osgood, D. W., Foster, E. M., Flanagan, C., & Ruth, G. (2004). Why focus on the transition to adulthood for vulnerable populations? In D. W. Osgood, E. M. Foster, C. Flanagan, & G. R. Ruth (Eds.), On your own without a net: The transition to adulthood for vulnerable populations. Chicago, IL: University of Chicago Press.
Osterman, P. (2008). College for all? The labor market for college educated Workers. Washington, DC: Center for American Progress.
Pascarella, E. T., & Terenzini, P. T. (2005). How college affects students: Vol. 2. A third decade of research. San Francisco, CA: Jossey-Bass.
Paulsen, M. B., & St. John, E. P. (1997). The financial nexus between college choice and persistence. In R. A. Voorhees (Ed.), Researching student aid: Creating an action agenda (pp. 65–82). San Francisco, CA: Jossey-Bass.
Paulsen, M. B., & St. John, E. P. (2002). Social class and college costs: Examining the financial nexus between college choice and persistence. Journal of Higher Education, 73(3), 189–236.
Perna, L. W. (1998). The contribution of financial aid to undergraduate persistence. Journal of Student Financial Aid, 28(3), 25–40.
Perna, L. (2006). Understanding the relationship between information about college prices and financial aid and students’ college-related behaviors. American Behavioral Scientist, 49(12), 1620–1635.
Psacharopoulos, G., & Patrinos, H. A. (2004). Human capital and rates of return. In G. Johnes & J. Johnes (Eds.), International handbook on the economics of education. Cheltenham: Elgar.
Raftery, A., & Hout, M. (1993). Maximally maintained inequality: Expansion, reform, and opportunity in Irish education, 1921–75. Sociology of Education, 66(1), 41–62.
Rimer, S. 2008. Gates Grants Aim to Help Low-Income Students Finish College. The New York Times. p. A21. December 9.
Roderick, M., Nagaoka, J., & Allensworth, E. (with Coca, V., Correa, M., and Stoker, G.). (2006). From high school to the future: A first look at Chicago public school graduates’ college enrollment, college preparation, and graduation from four-year colleges. Chicago, IL: Consortium on Chicago School Research.
Rogers, K. (2006). Exploring financial aid knowledge and the impact of financial aid awards among adult learners in community college. Presentation to the Student Financial Aid Research Network. Providence, RI.
Rogers, K. (2008). Running on empty: Financial aid awareness among low-income adult learners. Washington, DC: National Community College Symposium. Department of Education.
Rouse, C. E. (2004). Low-income students and college attendance: An exploration of income expectations. Social Science Quarterly, 85(5), 1299–1317.
Rumberger, R. (1980). The economic decline of college graduates: Fact or fallacy? The Journal of Human Resources, 15(1), 99–112.
Ryder, H. E., Stafford, F. P., & Stephan, P. (1976). Labor, leisure and training over the life cycle. International Economic Review, 17(3), 651–674.
Schirm, A., & Rodriguez-Planas, N. (2004). The Quantum Opportunity Program demonstration: Initial post-intervention impacts. Washington, DC: US Department of Labor.
Schweinhart, L. J., Barnes, H. V., Weikart, D. P., Barnett, W. S., & Epstein, A. S. (1993). Significant benefits: The High/Scope Perry Preschool study through age 27. Ypsilanti, MI: High/Scope Press.
Seftor, N., & Turner, S. (2002). Back to school: Federal student aid policy and adult college enrollment. Journal of Human Resources, 37, 336–352.
Shadish, W. J., Cook, T., & Campbell, D. (2002). Experimental and quasiexperimental designs for generalized causal inference. Boston, MA: Houghton Mifflin, 26, 667–692.
Shanahan, M. J. (2000). Pathways to adulthood in changing societies: Variability and mechanisms in life course perspective. Annual Review of Sociology, 667–692.
Shefrin, H., & Statman, M. (1985). The disposition to sell winners too early and ride losers too long: Theory and evidence. Journal of Finance, XI, 777–790.
Singell, D. L. (2004). Come and stay a while: Does financial aid effect retention conditioned on enrollment at a large public university? Economics of Education Review, 23(5), 459–471.
Singell, D. L., & Stater, M. (2006). Going, going, gone: The effects of aid policies on graduation at three large public institutions. Policy Sciences, 39(4), 379–403.
Smith, H. (1986). Overeducation and underemployment: An agnostic review. Sociology of Education, 59, 85–99.
Somers, P. (1993). Are mondo scholarships effective? Journal of Student Financial Aid, 23(2), 37–38.
St. John, E. (2004). Federal and state Roles in Equalizing Postsecondary Opportunity. Readings in Equal Education. v19. AMS press.
St. John, E. (2006). Contending with financial inequality. American Behavioral Scientist, 49(12), 1604–1619.
St. John, E., Andrieu, S., Oescher, J., & Starkey, J. (1994). The influence of student aid on within-year persistence by traditional college-age students at four-year colleges. Research in Higher Education, 35, 455–480.
St. John, E., Cabrera, A., Nora, A., & Asker, E. (2000). Economic influences on persistence reconsidered: How can finance research inform the reconceptualization of persistence models?” In J. M. Braxton (Ed.), Reworking the student departure puzzle: New theory and research on college student retention. Nashville, TN: Vanderbilt University Press.
St. John, E., Paulsen, M., & Carter, D. (2005). Diversity, college costs, and postsecondary opportunity: An examination of the financial nexus between college choice and persistence for African Americans and Whites. Journal of Higher Education, 76(5), 545–569.
Staff, J., & Mortimer, J. T. (2007). Education and work strategies from adolescence to early adulthood: Consequences for educational attainment. Social Forces, 85, 1169–1194.
Stampen, J. O., & Cabrera, A. F. (1988). The targeting and packaging of student aid and its effect on attrition. Economics of Education Review, 7(1), 29–46.
Stinebrickner, T., & Stinebrickner, R. (2003). Understanding educational outcomes of students from low-income families: Evidence from a liberal arts college with a full tuition subsidy program. Journal of Human Resources, 38(3), 591–617.
Stinebrickner, T., & Stinebrickner, R. (2007). The effect of credit constraints on the college dropout decision: A direct approach using a new panel study. NBER.
Stinebrickner, R., & Stinebrickner, T. (2004). Time-use and college outcomes. Journal of Econometrics, 121(1–2), 243–269.
Thaler, R. (1981). Some empirical evidence on dynamic inconsistency. Economics Letters, 81, 201–207.
Tierney, W. (1992). An anthropological analysis of student participation in college. Journal of Higher Education, 63(6), 603–618.
Tierney, W. (1999). Models of minority college-going and retention: Cultural integrity versus cultural suicide. Journal of Negro Education, 68(1), 80–92.
Tinto, V. (1993). Leaving college: Rethinking the causes and cures of student attrition (2nd ed.).Chicago, IL: University of Chicago Press. (Originally published 1987.)
Titus, M. A. (2006). No college student left behind: The influence of financial aspects of a state's higher education policy on college completion. The Review of Higher Education, 29(3), 293–317.
Titus, M. A. (2007). Detecting selection bias, using propensity score matching, and estimating treatment effects: An application to the private returns to a master's degree. Research in Higher Education, 48(4), 487–521.
Trostel, P. A. (2004). Returns to scale in producing human capital from schooling. Oxford Economic Papers, 56(3), 461–484.
Trostel, P. A. (2005). Nonlinearity in the rate of return to education. Journal of Applied Economics, 8(1), 191–202.
Trostel, P. A., & Walker, I. (2004). Sheepskin effects in work behaviour. Applied Economics, 36(17), 1959–1966.
Trostel, P. A., & Walker, I. (2006). Education and work. Education Economics, 14(4), 377–399.
Turley, R., & Desmond, M. (2008). Unanticipated educational consequences of a positive parent—child relationship. THEOP paper. http://theop.princeton.edu/reports/wp/Unanticipated%20 Educational%20Consequences%20Turley%20Desmond%20nocodes.pdf
Tyler, J., Murnane, R., & Levy, F. (1995). Are more college graduates really taking ‘high school’ jobs? Monthly labor review. December. Washington, DC: Bureau of Labor Statistics.
Uchitelle, L. (1990). Surplus of college graduates dims job outlook for others. New York Times, June 18, p. 1.
US Department of Education (2007). Digest of education statistics. Washington, DC: Author.
Van de Werfhorst, H. G., & Hofstede, S. (2007). Cultural capital or relative risk aversion? Two mechanisms for educational inequality compared. The British Journal of Sociology, 58(3), 391–415.
van der Klaauw, W. (2001). Estimating the effect of financial aid offers on college enrollment: A regression-discontinuity approach. International Economic Review, 43, 1249–1287.
Voorhees, R. A. (1985). Financial aid and persistence: Do the federal campus-based aid programs make a difference? Journal of Student Financial Aid, 15(l), 21–30.
Walpole, M. (2008). Economically and educationally challenged students in higher education. San Francisco, CA: Wiley/Jossey-Bass ASHE Series.
Weber, R., & Dawes, R. (2005). Behavioral economics. In N. Smelser and R. Swedberg (Eds.), The handbook of economic sociology (pp. 90–108). New York: Russell Sage Foundation.
Weis, L. (1985). Between two worlds: Black students in an urban community college. Boston, MA: Routledge & Kegan Paul.
Weiss, Y., & Gronau, R. (1981). Expected interruptions in labour force participation and sex- related differences in earnings growth. Review of Economic Studies, 48(4), 607–619.
Wolfe, B., & Haveman, R. (2001). Accounting for the social and non-market benefits of education. In Helliwell (Ed.), The contribution of human and social capital to sustained economic growth and well-being. Vancouver, BC: University of British Columbia Press.
Wolfe, B., & Haveman, R. (2003). Social and nonmarket benefits from education in an advanced economy. In Y. Kodrzycki (Ed.), Education in the 21st century: Meeting the challenges of a changing world. Boston, MA: Federal Reserve Bank of Boston.
Yelowitz, A. (2007). Young adults leaving the nest: The role of cost-of-living. In S. Danziger and C. Rouse (Eds.), The price of independence: The economics of early adulthood. New York: Russell Sage Foundation.
Zelizer, V. (1994). The social meaning of money. New York: Basic Books.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2009 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Goldrick-Rab, S., Harris, D.N., Trostel, P.A. (2009). Why Financial Aid Matters (or Does Not) for College Success: Toward a New Interdisciplinary Perspective. In: Smart, J.C. (eds) Higher Education: Handbook of Theory and Research. Higher Education: Handbook of Theory and Research, vol 24. Springer, Dordrecht. https://doi.org/10.1007/978-1-4020-9628-0_1
Download citation
DOI: https://doi.org/10.1007/978-1-4020-9628-0_1
Publisher Name: Springer, Dordrecht
Print ISBN: 978-1-4020-9627-3
Online ISBN: 978-1-4020-9628-0
eBook Packages: Humanities, Social Sciences and LawEducation (R0)