Abstract
This paper examines how merit-based tuition assistance policies implemented by a growing number of states affect one important dimension of college graduate behaviour: the conditional probability of working in the state. Using a restricted-use administrative dataset for West Virginia, we find that, conditional on in-state enrolment and graduation, graduates that received merit aid are less likely than similar non-recipient graduates to work at establishments in the state. These results suggest that the positive influences of merit aid in West Virginia on human capital accumulation stemming from increased in-state college enrolment and graduation are dampened by the locational decisions of the recipients after graduation.
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