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Financial Aid and Upward Mobility: Evidence from Colombia's Ser Pilo Paga
We study the impact of financial aid on upward mobility. An unprecedented financial aid reform in Colombia dramatically increased the enrollment of academically successful students of low socioeconomic status (SES) in high-quality universities. We leverage the policy’s stringent eligibility criteria and population-wide administrative microdata, using regression discontinuity (RD) and difference-in-difference (DD) methodologies to estimate causal effects on later-life educational and labor-market outcomes. The program notably boosted attendance of low-SES high-achievers at colleges with high value-added, increasing their returns to ability. Low-SES students are more likely to obtain bachelor’s degrees from these colleges, especially in STEM fields, and they achieve higher scores in the college graduation exam. Nine years later, their earnings are 18 log points higher, with a greater likelihood of being in the top 1%, reflecting increased upper-tail mobility. The policy successfully narrowed socioeconomic gaps in college quality, attainment, skill development, earnings, and the returns to ability.
Date:
10 June 2025, 16:00
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room A
Speaker:
Juliana Londono-Velez (University of California, Los Angele)
Organising department:
Department of Economics
Part of:
Applied Microeconomics Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Edward Valenzano
