Employment and salaries of university graduates: impact evaluation of a financial aid programme by means of propensity score matching

Abstract

Introduction / Objective: Educational funding in Venezuela is limited, especially in private higher education institutions, due to existing budget constraints. Despite these limitations, some grant programmes manage to serve a significant proportion of students. The purpose of this research was to evaluate the impact of a financial aid programme at a Latin American university by analysing the probability of employment and remuneration at three key points in time: during the degree programme, upon graduation, and three years after graduation. Methodology: A sample of graduates from various programmes was used, and information about their career paths was collected by means of a follow-up survey. The analysis was conducted using propensity score matching through the Average Treatment Effect on the Treated (ATT) estimator, employing both parametric and non-parametric methods. Results: The results indicate an inverse relationship between the financial aid received and the salary earned during the evaluation periods, alongside a positive relationship with the probability of being employed. However, none of the estimated coefficients were significant, whether for the nearest neighbour, the 5 or 10 nearest neighbours, the Kernel estimation, or the local linear estimation, taking into account the common support and the 20% trimming. Conclusions: It cannot be concluded that the grant received during the degree programme significantly improves employment and remuneration outcomes. This suggests the need for a comprehensive programme that includes support in job placement processes in order to enhance these outcomes.