Retaking the ACT: The Effect of a State Meritbased Scholarship on TestTaking, Enrollment, retention,

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Retaking the ACTThe Effect of a State
Merit-based Scholarship on Test-Taking,
Enrollment, retention, and Employment23rd
Annual Student Financial Aid Research Network
Conference Providence, RI. June 22-24, 2006

• Michel-Ange Pantal
• Department of Economics
• University of Missouri
• Michael Podgursky
• Department of Economics
• University of Missouri
• Peter Mueser
• Department of Economics
• University of Missouri
• This Research was supported in part by a grant
  from Lumina Foundation for Education

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The Bright Flight Scholarship ProgramA Brief
Overview

• Created in 1986
• Largest state-administered merit-based program
• Basic requirement 30 or higher on the ACT
• Awards 1000 per semester
• Duration Up to 10 semesters
• Does it work?

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The Graduating Class of 1997
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Primary Evidence of Retaking
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Primary Evidence of the Bright Flight impact
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(No Transcript)
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Modeling opportunistic Behavior
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Bright Flight ImpactThe Case for a Regression
Discontinuity Design
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Bright Flight ImpactThe Case for an Alternative
Approach
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Estimation Strategy

• RD Design Specification
• Two-Stage IV Specification

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Results