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.