Sources of Financial Support and Academic Performance in Economics Principles Courses

Abstract

In this paper, we examine two factors that may affect student achievement in economics principles courses. First, we examine the effect of working for pay on course performance at a commuter school where 70 percent of the student body works for pay at least part time. Second, we examine how the sources of funds (ranging from self-financing to loans) used to pay for college affect student achievement. We find that working for pay is negatively associated with course performance and that the sources of education financing have differential effects on the course grade with employer financing (14.75 percentage points higher) and loans (8.59 percentage points higher) having positive and significant effects and other sources of financing (scholarships, financial aid, self financing) not having significant effects.