Daniela Sonedda (University of Insubria)
Francesco Figari, Marcello Matranga, Mariacristina Rossi and Gianluigi Vernasca
We employ a difference-in-differences estimator to examine the impact of a combined need- and merit-based grant on educational and labour market outcomes within a non-selective university setting. The policy fails to support many targeted students, possibly due to their inability to cope with the demands of college-level work. Furthermore, a significant number of these students opt not to apply, likely because they anticipate having to return the grants. Our analysis also reveals unintended disincentives, as students often prioritise retaining their grants over enhancing their academic performance. This trend is evident among both male and female students, although it appears to be more pronounced among females. If equity and inclusion in education are priorities, need- and merit-based university grants alone are insufficient to address the issue effectively. Our findings further suggest that a non-selective university system should be complemented by investment in vocational education and training.