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Measuring value-added in higher education: Possibilities and limitations in the use of administrative data

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  • Cunha, Jesse M.
  • Miller, Trey

Abstract

This paper develops a general methodology for measuring the value added of institutions of higher education using commonly available administrative data. Our approach recognizes the data limitations and selection problems inherent in higher education, and highlights the challenges these issues pose for education policy. Combining information from different administrative sources in the state of Texas, we follow the universe of Texas college applicants from the time of application (pre-enrollment) through public college and into the labor market. In specifications that do not control for selection, we find large, significant differences across colleges in terms of persistence, graduation, and earnings; however, these differences decrease substantially when we control for selection. In light of the growing interest in using value-added measures in higher education for both funding and incentivizing purposes, our methodology offers unique evidence and lessons for policy makers.

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  • Cunha, Jesse M. & Miller, Trey, 2014. "Measuring value-added in higher education: Possibilities and limitations in the use of administrative data," Economics of Education Review, Elsevier, vol. 42(C), pages 64-77.
    • Handle: RePEc:eee:ecoedu:v:42:y:2014:i:c:p:64-77
    DOI: 10.1016/j.econedurev.2014.06.001
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    Cited by:

    1. Veronica Minaya & Judith Scott-Clayton, 2018. "Labor Market Outcomes and Postsecondary Accountability: Are Imperfect Metrics Better Than None?," NBER Chapters, in: Productivity in Higher Education, pages 67-104, National Bureau of Economic Research, Inc.
    2. Eleanor Wiske Dillon & Jeffrey Andrew Smith, 2020. "The Consequences of Academic Match between Students and Colleges," Journal of Human Resources, University of Wisconsin Press, vol. 55(3), pages 767-808.
    3. Anna Salomons & Maarten Goos, 2014. "Measuring Teaching Quality in Higher Education: Assessing the Problem of Selection Bias in Course Evaluations," Working Papers 14-16, Utrecht School of Economics.
    4. Benlaria Houcine & Gheraia Zouheyr, 2019. "Estimating the Economic returns of Education in KSA by using Mincerian Earnings Function," International Journal of Economics and Financial Issues, Econjournals, vol. 9(6), pages 94-99.
    5. Britton, Jack & van der Erve, Laura & Belfield, Chris & Vignoles, Anna & Dickson, Matt & Zhu, Yu & Walker, Ian & Dearden, Lorraine & Sibieta, Luke & Buscha, Franz, 2022. "How much does degree choice matter?," Labour Economics, Elsevier, vol. 79(C).
    6. Bacalhau, Priscilla & Mattos, Enlinson & Ponczek, Vladimir Pinheiro, 2019. "College quality signaling and individual performance: effects on labor market outcomes after graduation," Textos para discussão 502, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    7. repec:iab:iabjlr:v:55:i::p:art.19 is not listed on IDEAS
    8. Mabel, Zachary & Libassi, C.J. & Hurwitz, Michael, 2020. "The value of using early-career earnings data in the College Scorecard to guide college choices," Economics of Education Review, Elsevier, vol. 75(C).
    9. Abílio António Freitas Belo, 2017. "The evaluation of the Higher Education lecturer competences in East Timor: a student inquiry," Review of Social Sciences, LAR Center Press, vol. 2(1), pages 36-51, January.
    10. Arlen Guarín & Sebastián Londoño & Carlos Medina & Julieth Parra & Christian Posso & Carlos Eduardo Vélez, 2016. "Estimating the Effect of Attending a Public versus a Private University in Colombia on Academic Achievement **** Una Estimación del Efecto sobre el Rendimiento Académico de Asistir a una Universidad P," Borradores de Economia 968, Banco de la Republica de Colombia.
    11. Rodney J. Andrews & Kevin M. Stange, 2019. "Price Regulation, Price Discrimination, and Equality of Opportunity in Higher Education: Evidence from Texas," American Economic Journal: Economic Policy, American Economic Association, vol. 11(4), pages 31-65, November.
    12. Jiang, Dezhi, 2021. "Whose Investments in Higher Education Have Been Most Influenced by Labor Market Conditions in Recent Decades?," SocArXiv 83upm, Center for Open Science.
    13. Falch, Torberg & Iversen, Jon Marius Vaag & Nyhus, Ole Henning & Strøm, Bjarne, 2022. "Quality measures in higher education: Norwegian evidence," Economics of Education Review, Elsevier, vol. 87(C).
    14. Balcázar, Carlos Felipe & Nopo, Hugo R., 2014. "Broken Gears: The Value Added of Higher Education on Teachers' Academic Achievement," IZA Discussion Papers 8477, Institute of Labor Economics (IZA).
    15. Michel Grosz & Michal Kurlaender & Ann Stevens, 2022. "Capacity and Flexibility in Community College CTE Programs: Program Offerings and Student Success," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(1), pages 140-188, February.
    16. Silvia Kopecny & Steffen Hillmert, 2021. "Place of study, field of study and labour-market region: What matters for wage differences among higher-education graduates?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-21, December.
    17. Jack Mountjoy & Brent Hickman, 2020. "The Returns to College(s): Estimating Value-Added and Match Effects in Higher Education," Working Papers 2020-08, Becker Friedman Institute for Research In Economics.
    18. Maarten Goos & Anna Salomons, 2017. "Measuring teaching quality in higher education: assessing selection bias in course evaluations," Research in Higher Education, Springer;Association for Institutional Research, vol. 58(4), pages 341-364, June.
    19. Doris, Aedin & O'Neill, Donal & Sweetman, Olive, 2019. "Good Schools or Good Students? The Importance of Selectivity for School Rankings," IZA Discussion Papers 12459, Institute of Labor Economics (IZA).
    20. Laszlo Gadar & Janos Abonyi, 2018. "Graph configuration model based evaluation of the education-occupation match," PLOS ONE, Public Library of Science, vol. 13(3), pages 1-19, March.
    21. Kopecny, Silvia & Hillmert, Steffen, 2021. "Place of study, field of study and labour-market region: What matters for wage differences among higher-education graduates?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-19.
    22. Adriana Camacho & Julián Messina & Juan Pablo Uribe, 2017. "The Expansion of Higher Education in Colombia: Bad Students or Bad Programs?," Documentos CEDE 15352, Universidad de los Andes, Facultad de Economía, CEDE.
    23. Veronica Minaya & Judith Scott-Clayton, 2016. "Labor Market Outcomes and Postsecondary Accountability: Are Imperfect Metrics Better than None?," NBER Working Papers 22880, National Bureau of Economic Research, Inc.
    24. Fernando Núñez-Regueiro & Pascal Bressoux, 2022. "Évaluer l’action éducative des lycées à travers les indicateurs de valeur ajoutée des lycées : quand le « bruit » s’immisce dans l’administration de la preuve," Post-Print hal-03896378, HAL.

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    More about this item

    Keywords

    I22; I23; I28; Higher education; Value-added; Administrative data; Graduation; Persistence; Earnings;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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