TY - JOUR T1 - On Money and Motivation JF - Journal of Human Resources JO - J Hum Resour SP - 614 LP - 646 DO - 10.3368/jhr.46.3.614 VL - 46 IS - 3 AU - Judith Scott-Clayton Y1 - 2011/07/01 UR - http://jhr.uwpress.org/content/46/3/614.abstract N2 - Programs linking college aid to academic achievement could work either by lowering the cost of college or by inducing additional student effort. I examine the PROMISE program in West Virginia, which offers free tuition to students who maintain a minimum GPA and course load. Using administrative data, I exploit discontinuities in the eligibility formula and the timing of implementation to estimate causal effects. I find robust and significant impacts on key academic outcomes. Impacts are concentrated around the annual requirements for scholarship renewal, suggesting that the program works via incentives for academic achievement, not simply by relaxing financial constraints. ER -