The most widely accepted rationale behind this trend has been the need to develop and retain highly qualified workers in a state (Heller & Marin, 2004; Rogers & Heller, 2003; Doyle, 2006). Some research has provided positive relationship between merit aid programs and the prevention of brain strain (Cornwell, Mustard & Sridhar, 2006; Cornwell, 2006; Orsuwan & Heck, 2008; Zhang & Ness, 2010). For example, Zhang & Ness (2010) found the implementation of state merit aid programs both increases the total 1st-year student enrollment in merit aid states and boosts resident college enrollment in these states …show more content…
Heller and Rogers (2003) used data from the Michigan Department of Education (2003), finding that while there was an initial gain in performance in scholarship qualification from the first year to the second year, there was no similar gain by the third cohort of students. Several research used Difference-in-Difference method to indicate that merit-based aid programs have little or even no effect on student completion rate (Sjoquist & Winters, 2015; Singell, 2003). Besides, research indicated that effectiveness of merit-based aid programs varies within different student groups, such as different race and economic backgrounds (Ness & Tucker 2008; Long, 2007; Singell, 2003; Singell, Waddell & Curs, 2004). African American and low-income students are more likely to perceive their eligibility for merit-based scholarships as having an impact on their decision on whether or not to attend college (Ness & Tucker,