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Evaluating the impact of educational financing in a Venezuelan university. A regression discontinuity analysis on dropout and graduation

Abstract:

The present research evaluated the impact of the financial aid program implemented by the Universidad Católica Andrés Bello, Caracas, Venezuela, on dropout and graduation. A fuzzy regression design was used for multiple treatments with four cut-off points in the assignment variable (aid index). The results obtained show that the marginal effects on the different types of dropout are significant and present the expected signs (negative). A 1% increase in the tuition discount reduces early dropout by approximately 1% and 0.5% reduces late dropout; at the same time, it raises the graduation rate by 0.6%. The evidence seems to show that changes are needed in the program in terms of allocation criteria and amounts of financial support.