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Research ArticleArticles

Student Responses to Merit Scholarship Retention Rules

Christopher M. Cornwell, Kyung Hee Lee and David B. Mustard
Journal of Human Resources, October 2005, 40 (4) 895-917; DOI: https://doi.org/10.3368/jhr.40.4.895
Christopher M. Cornwell
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Kyung Hee Lee
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David B. Mustard
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Abstract

A common justification for state-sponsored merit scholarships like Georgia’s HOPE program is to promote academic achievement. However, grade-based retention rules encourage other behavioral responses. Using longitudinal records of enrolled undergraduates at the University of Georgia between 1989 and 1997, we estimate the effects of HOPE on course-taking, treating nonresidents as a control group. First, we find that HOPE decreased full-load enrollments and increased course withdrawals among resident freshmen. Second, the scholarship’s influence on course-taking behavior is concentrated on students whose predicted freshmen GPAs place them on or below the scholarship-retention margin. Third, HOPE substantially increased summer school credits.

  • Received July 2003.
  • Accepted February 2005.

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Journal of Human Resources
Vol. 40, Issue 4
2 Oct 2005
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Student Responses to Merit Scholarship Retention Rules
Christopher M. Cornwell, Kyung Hee Lee, David B. Mustard
Journal of Human Resources Oct 2005, 40 (4) 895-917; DOI: 10.3368/jhr.40.4.895

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Student Responses to Merit Scholarship Retention Rules
Christopher M. Cornwell, Kyung Hee Lee, David B. Mustard
Journal of Human Resources Oct 2005, 40 (4) 895-917; DOI: 10.3368/jhr.40.4.895
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