Abstract
One way in which financial aid is thought to promote college success is by minimizing the time students spend working. Yet, little research has examined if this intended first-order effect occurs, and results are mixed. We leverage a randomized experiment and find that students from low-income families in Wisconsin offered additional grant aid were 5.88 percentage points less likely to work and worked 1.69 fewer hours per week than similar peers, an 8.56% and 14.35% reduction, respectively. Students offered the grant also improved qualitative aspects of their work experiences; they were less likely to work extensively, during the morning hours, or overnight. Grant aid thus appears to partially offset student employment, possibly improving prospects for academic achievement and attainment.
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