Dormitories or grants? Need-based aid and university students’ mobility in Italy

Usala, Cristian;Brau, Rinaldo

2026-01-01

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Abstract

We study how Italy’s need-based student-aid system (Diritto allo Studio Universitario, DSU) shapes first-time entrants’ choices of where and what to study by linking administrative records on first-time enrolments to university characteristics and DSU service provision. Using a Latent Class Logit model that accounts for heterogeneity in preferences, we find that dormitory capacity for eligible students substantially increases enrolment: adding 100 places raises enrolment at an average-sized institution by 5.3–9.6% (equivalent to about 19 to 34 additional students). By contrast, grants show no statistically significant effect. Dormitory availability matters most for students who lack a nearby university and those in STEM fields. Simulations focused on alternative expansions of dormitory supply suggest that a nationwide increase reallocates enrolment toward central/northern hubs and higher-quality institutions, whereas regionally targeted support in the South only marginally curbs South-to-North flows.