Information Frictions and the Effectiveness of...
Hosted by
˘▿˘
*◟*20/40 spots left
CEPA and SCANCOR bring you, "Ed Policy Seminar Series: Information Frictions and the Effectiveness of Need-Based Financial Aid: Evidence from Michigan’s Tuition Incentive Program," featuring guest speaker Kevin Stange, Professor of Public Policy at Ford School of Public Policy and Professor of Higher Education (by courtsey) at Marsal School of Education, Co-Director at Education Policy Initiative in the University of Michigan.
ABSTRACT: This paper examines the effects of a large need-based scholarship in Michigan, the Tuition Incentive Program (TIP). Despite its numerous good features, participation in the program remains low, likely due to informational frictions and application barriers. Using administrative data on 1.2 million high school graduates, we find null effects on enrollment with a regression discontinuity design but positive effects using a matching approach. To reconcile these patterns, we develop and estimate a structural model of college choice with endogenous aid take-up, in which students form beliefs about potential aid from noisy signals and for which students differ in the precision of these signals based on individual- and school-level factors driving awareness. This paper highlights the importance of informational frictions at mediating the effectiveness of financial aid.
ABOUT THE SPEAKER: Kevin Stange is a Professor of Public Policy and Education (by courtesy) at the University of Michigan where he teaches graduate and undergraduate courses in economics, higher education policy, and quantitative methods. He also is co-director of the Education Policy Initiative and a Research Associate at the National Bureau of Economic Research. During the 2022-2023 academic year he was on leave serving as Senior Advisor to the Under Secretary at the U.S. Department of Education.
Professor Stange's research investigates topics in empirical labor and public economics, with a focus on education. He currently is leading projects to better understand how higher education alters students' labor market trajectories, geographic and economic mobility and also how Michigan's financial aid programs impact college access and success. Before joining the Ford School, he was a Robert Wood Johnson Scholar in Health Policy Research at the University of Michigan. He received undergraduate degrees in Mechanical Engineering and Economics from MIT (1999) and his Ph.D. in Economics from the University of California, Berkeley (2008). Prior to graduate school, he worked as a policy analyst focused on workforce development at the San Francisco Human Services Agency and as a management consultant.
Make sure to RSVP as seats are limited!
BREAKFAST opens at 9:30am followed by the seminar at 10am.
Open to Stanford and GSE Community.
Guest List
-‿-
◕‿◕˜▾˜