The Impact of Financial Incentives on Students' Performance: Evidence from the National Research University Higher School of Economics

Student: Efimova Daria

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2020

In this work, using the ratings data of 15 educational programs of the National Research University Higher School of Economics, we examine the impact of financial incentives, in particular, the impact of discounts on education, on student performance. The discount is granted for one academic year and its extension depends on the student's actual performance, measured relative to other students. Using regression analysis, we found that the closeness to a large discount, in particular to a 50%, 70% and 100% discounts, motivates students to increase their academic performance in subsequent periods. The limitation of this study is the relatively small size of the analyzed sample. For more correct conclusions, further accumulation of empirical material is required.

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