Closing the achievement gap? Financial aid and academic performance in higher education

This paper evaluates the impact of scholarship aid on higher education outcomes in Morocco, examining whether financial support improves academic performance and progression. Using a sample of 13,300 graduate and undergraduate students observed between 2010 and 2023, the study applies Propensity Score Matching (PSM) with nearest-neighbor, radius, and kernel matching algorithms to compare scholarship recipients with similar non-recipients while controlling for observable characteristics. The results indicate that scholarships significantly improve academic outcomes. In particular, receiving a scholarship reduces the average time required to obtain a diploma by approximately five months and increases the likelihood of graduating with academic distinction. Balance diagnostics and sensitivity analyses confirm the robustness of these estimates. By providing new evidence from a developing-country context, this study contributes to the literature on financial aid, which has largely focused on access or evidence from high-income countries. The findings suggest that scholarship programs in Morocco could be further strengthened by combining financial aid with complementary academic support mechanisms.