The effect of increasing income limits on students’ academic achievement

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School of Business | Master's thesis

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Mcode

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en

Pages

48

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Abstract

In my thesis, I study the effect of the 2008 reform, which increased the income limits for students receiving student benefits, on their academic achievement. To do this, I analyze individual-level registry data on university students in Finland over the years from 2003 to 2013. In the preliminary analysis, I determine the individuals whose earnings were affected by the reform, and in the main analysis, I investigate whether the same individuals faced changes in their academic achievements. The results show that students previously constrained by the income limit increased their earnings, which also resulted in decreased completed credits during the study year. Meanwhile, the results for GPA are inconclusive. While the results are interesting and motivate further research and political discussion, this thesis cannot provide causal estimates for the coefficients.

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Domnisoru, Ciprian

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