Authors: Chester Polson and Emily Weisburst
Date: May 2014
Publication Type: Report, 37pp.
This paper considers the effect of federal work-study, a need-based financial aid program, on educational outcomes for individuals in two-year colleges in Texas. The authors found that both working in school (with any job) and participating in the federal work-study program (in a work-study job) are associated with a 12-15% increase in the probability of persisting to a second year of community college. Additionally, working in a position through the federal work-study program is associated with a higher probability of transferring to a four-year college by 3-4%. The authors also attempt to measure the effect of student federal work-study participation using an instrument of lagged average federal work-study earnings at the student’s institution, but this strategy does not yield precisely estimated outcomes due to the limited number of cohorts available.