The effect of state funded merit aid for college tuition on student performance in high school has been largely ignored by the current literature on merit aid programs, even though one aim of these programs is to provide incentives for increased academic achievement in high school. To test for such effects, we employ a selection model for…

Merit aid, a discount to college costs contingent upon academic performance, is nothing new. Colleges and private organizations have long rewarded high-achieving, college-bound high school students with scholarships. While merit aid has a long history in the private sector, it has not played a major role in the public sector. At the state level,…