For policymakers aiming to alter the migratory patterns of skilled labor, one potential tool involves subsidizing higher education. We present new evidence on the effects of merit aid scholarship programs — programs that offer partial or full tuition subsidies to high-achieving in-state students. Using Census data on 24 to 32 year olds in the U.S. from 1990 to 2010, we show that eligibility for merit aid programs slightly increases the propensity of state natives to live in-state, while also extending in-state enrollment into the late twenties. However, the share of a cohort both living in-state and having a BA is unchanged, with a possible decline in overall BA attainment. These patterns notwithstanding, the magnitude of merit aid effects is of an order of magnitude smaller than size of the treated population, suggesting that nearly all of the spending on these programs transfers resources to individuals whose ultimate migration decisions remain unchanged.
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