State merit-based financial aid programs increase the likelihood that college graduates will remain in their home state

With the effects of the financial crisis still being felt across the U.S., having a highly educated population is now more important than ever. Seeking to encourage students into higher education, many states have implemented merit programs which provide college scholarships to in-state students. David Sjoquist and John Winters examine the effectiveness of these programs, finding that strong merit aid can increase the likelihood that people will stay in their home state by between two and four percent.