Impact of financial aid in vocational and college enrollment (Abstract)

We aimed to evaluate the impact of governmental financial aid in vocational and college enrollment, solving the endogenous process in the application to benefits. Using a two-step instrumental varia- bles procedure, we found that college financial aid increases college enrollment by 30%. Being selected to college financial aid reduces the probability of vocational enrollment, although only vocational financial aid does increases this probability, which may be understood as a substitution effect.

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