Social And Economic Impact of Granting Scholarships To Beginning Students

Social And Economic Impact of Granting Scholarships To Beginning Students

SFI, in collaboration with the Hebrew University, conducted a first-of-its-kind study, whose purpose was to examine the social and economic impact of granting scholarships to beginning students. The study examined two segments of data;

1) University data; socio-demographic background variables, data on admission to the university, financial assistance requests, along with areas of study and graduation rates. The study followed eight classes of students, beginning in the year 2010 and ending in 2017. A total of 25,089 students were researched.

2) An online survey; distributed among all the students, which asked about their experiences after graduation; continuing education, employment and pay. The role of financial aid in completing the degree was also examined.

The study´s findings suggest that scholarships are beneficial to all parties; the university, the students and their families, and the Israeli economy.
  •  The rate of high degree graduates among scholarship recipients is higher; Despite the weaker socio-economic and academic opening data, it was found that students who received scholarships graduated at higher rates than those who did not. Specifically, in faculties where admission requirements were higher and/or there was a higher demand to complete them in the labor market (compared to those who did not receive them).
  • Graduates tended to earn more than those who have not graduated (dropped out). Especially in faculties where the conditions of admission are higher and / or there is a higher demand for those who complete them in the labour market.
  • In terms of employment, the recipients of financial assistance were similar to their counterparts in terms of finding employment in their field. The financial assistance (whether received or not) did not affect the sector in which they found employment: private, public or the third sector. In addition, 22% of graduates reported finding a high-tech job.
  • The total economic benefit of investing in scholarships is about NIS 150 million. The cost is about NIS 50 million. The benefits the potential value created in these years is about NIS 200 million, and thus the multiplier is 3.96.
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