In comparison with the other OECD countries, the Italian university system is characterized by a low rate of enrolment, high drop-out rates and a low amount of funds aimed at increasing the participation of students from low income families.
This work estimates the effect of need-based grants on drop-out rates in the first year, comparing the behaviour of students awarded grants to those eligible but who do not receive them due to insufficient funds.
The main results are the following:
- the drop-out rate for those who received the grant would have been 2.7 points higher (from 7%) in the absence of the grant;
- the impact of the grant is higher for students resident in the South of Italy, for those from vocational high schools and for those who reported a high final grade at high school;
- students with grants were significantly more likely to graduate and to do so within the set length of the course.
Published in 2020 in: Journal of Human Capital, v. 14, 3, pp. 343-370.
