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.