Seminar University Loans and Grants: Effects on Educational and Labor Market Outcomes Econometrics/Applied Microeconomics Seminar Add to calendar 2022-11-07 11:00 2022-11-07 12:15 Europe/Rome University Loans and Grants: Effects on Educational and Labor Market Outcomes Seminar Room 3rd Floor Villa La Fonte YYYY-MM-DD Print Share: Share on Facebook Share on BlueSky Share on X Share on LinkedIn Send by email Scheduled dates Nov 07 2022 11:00 - 12:15 CET Seminar Room 3rd Floor, Villa La Fonte Organised by Department of Economics In this seminar, Alex Solís (Stockholm School of Economics) will present the paper "University Loans and Grants: Effects on Educational and Labor Market Outcomes." This paper presents evidence for the impacts of student loans and grants on long-term outcomes, examining the eligibility cutoffs for three financial aid programs in Chile that enable a regression discontinuity design. Results show that access to university loans increases degree completion mostly among women and students from low-income families and has positive, but close to zero, effects on labour experience and earnings in the long run; vocational loans only produce positive impacts on students ineligible for university loans. In contrast, equivalent access to grants does not affect degree completion or labour market outcomes. The low sensitivity to reductions in tuition costs observed at the grant cutoff and the higher effects among students from low-income families suggest the presence of credit constraints.