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Post‐Secondary Attendance by Parental Income in the U.S. And Canada: Do Financial Aid Policies Explain the Differences?

We examine the extent to which tuition and needsbased aid policies explain important differences in the relationship between family income and postsecondary attendance relationships between Canada and the U.S. Using data from recent cohorts, we estimate substantially smaller attendance gaps by parental income in Canada relative to the U.S., even after controlling for family background, cognitive achievement, and localresidence fixed effects. We next document that U.S. public tuition and financial aid policies are actually more generous to lowincome youth than are Canadian policies. Equalizing these policies across Canada and the U.S. would likely lead to a greater difference in incomeattendance gradients.