Association for Public Policy Analysis & Management

This research examines the Ohio Appalachian Center for Higher Education (OACHE) and its impact on college attendance rates in Appalachian Ohio during the 1990s and 2000s. Aside from persistently low household income, the region was also plagued by chronically low postsecondary educational attainment, which was primarily attributed to information problems. In a survey conducted by the Ohio Board of Regents in 1991, students overestimated the cost of college and reported a lack of knowledge regarding available financial aid. In addition, the parents of most students did not receive postsecondary education, and this lack of institutional knowledge presented barriers to some students. Ample schooling opportunities existed in the region, yet these artificial barriers prevented many students from pursuing postsecondary education.

The Ohio General Assembly created OACHE in 1993 to address these information problems. One of the primary tools of OACHE were $5,000 - $10,000 competitive grants for public high schools in the region. Schools could apply for the funding and use the resources to promote college attendance among its students through campus visits, college fairs, mentor programs, etc. The grants lasted two years but were intended to create a culture-shift within the school towards higher education attainment.

This research estimates the causal impact of these grants using a difference-in-differences regression strategy. I compare the number of students enrolled in college for counties in which a high school received a competitive grant and those counties in which a high school applied for a grant but was not selected. This difference in enrollment between these two groups is the causal estimate of the program intervention.

Using data from the Ohio Department of Higher Education, I am able to explore much more than simply the number of students obtaining any form of postsecondary education. I estimate how the program affected attendance dynamics at four-year universities, community colleges, and technical colleges. Furthermore, I examine if students attended more selective institutions after treatment.

Still today, there is a relative lack of education for low-income students, even controlling for ability. Understanding what keeps low-income students from pursuing and completing college has vast ramifications for not only those students but for society as a whole. As education and human capital attainment becomes more important in the economy, it is paramount to overcome information problems such as those documented in Appalachian Ohio. This research seeks to understand the impact of the competitive grants and provide recommendations for implementation today.