Belmont University Research Symposium (BURS)

The Influence of Lottery-Funded Scholarships on College Attendance Among Low-Income Students

Publication Date

Spring 4-18-2024

College

Business, Jack C. Massey College of

Department

Economics and Finance

BURS Faculty Advisor

Dustin Rumbaugh

Presentation Type

Oral Presentation

Abstract

This study examines the impact of state merit-based scholarships on low-income student populations. States often use lottery-funded merit scholarships to incentivize high-achieving students to stay in the state. However, some have criticized the lottery scholarship system for a lack of consideration for the low-income population, who often receive less financial aid and disproportionally fund the system by purchasing more lottery tickets than higher income individuals. We use data from the American Community Survey (ACS) and the National Center for Education Statistics (NCES) with a difference-in-differences approach to compare individuals of varying income levels from multiple states to analyze the impact of lottery funded scholarships for low-income individuals.

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