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School Accountability: Can We Reward Schools and Avoid Pupil Selection?

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Author Info

  • Ooghe, Erwin

    ()
    (K.U.Leuven)

  • Schokkaert, Erik

    ()
    (K.U.Leuven)

Abstract

School accountability schemes require measures of school performance, and these measures are in practice often based on pupil test scores. It is well-known that insufficiently correcting these test scores for pupil characteristics may provide incentives for inefficient pupil selection. We show that the trade-off between reward and pupil selection is not only a matter of sufficient information. A school accountability scheme that rewards school performance will create incentives for pupil selection, even under perfect information, unless the educational production function satisfies an (unrealistic) separability assumption. We propose different compromise solutions and discuss the resulting incentives in theory. The empirical relevance of our analysis – i.e., the rejection of the separability assumption and the magnitude of the incentives in the different compromise solutions – is illustrated with Flemish data.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7420.

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Length: 38 pages
Date of creation: May 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7420

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Keywords: school accountability; cream-skimming; educational production function;

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References

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  1. Reback, Randall, 2008. "Teaching to the rating: School accountability and the distribution of student achievement," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1394-1415, June.
  2. Barlevy, Gadi & Neal, Derek, 2009. "Pay for Percentile," IZA Discussion Papers 4383, Institute for the Study of Labor (IZA).
  3. Figlio, David N. & Rouse, Cecilia Elena, 2006. "Do accountability and voucher threats improve low-performing schools?," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 239-255, January.
  4. Jacob, Brian A., 2005. "Accountability, incentives and behavior: the impact of high-stakes testing in the Chicago Public Schools," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 761-796, June.
  5. Meyer, Robert H., 1997. "Value-added indicators of school performance: A primer," Economics of Education Review, Elsevier, vol. 16(3), pages 283-301, June.
  6. Thomas J. Kane & Douglas O. Staiger, 2002. "The Promise and Pitfalls of Using Imprecise School Accountability Measures," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 91-114, Fall.
  7. Verbeek, M. & Nijman, T., 1990. "Testing For Selectivity Bias In Panel Data Models," Papers 9018, Tilburg - Center for Economic Research.
  8. Eric A. Hanushek & Margaret E. Raymond, 2004. "Does School Accountability Lead to Improved Student Performance?," NBER Working Papers 10591, National Bureau of Economic Research, Inc.
  9. Jim Taylor & Anh Ngoc Nguyen, 2006. "An Analysis of the Value Added by Secondary Schools in England: Is the Value Added Indicator of Any Value?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(2), pages 203-224, 04.
  10. Erik Schokkaert & Geert Dhaene & Carine Van De Voorde, 1998. "Risk adjustment and the trade-off between efficiency and risk selection: an application of the theory of fair compensation," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 465-480.
  11. Erik SCHOKKAERT & Carine VAN DE VOORDE, 2000. "Risk Selection and the Specification of the Conventional Risk Adjustment Formula," Center for Economic Studies - Discussion papers ces0011, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  12. Burgess, Simon & Propper, Carol & Slater, Helen & Wilson, Deborah, 2005. "Who wins and who loses from school accountability? The distribution of educational gain in English secondary schools," CEPR Discussion Papers 5248, C.E.P.R. Discussion Papers.
  13. John Cawley & James Heckman & Edward Vytlacil, 1999. "On Policies To Reward The Value Added By Educators," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 720-727, November.
  14. Fleurbaey, Marc, 2008. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199215911.
  15. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
  16. Dennis Epple & Richard Romano, 2002. "Educational Vouchers and Cream Skimming," NBER Working Papers 9354, National Bureau of Economic Research, Inc.
  17. Hausman, Jerry A & Wise, David A, 1979. "Attrition Bias in Experimental and Panel Data: The Gary Income Maintenance Experiment," Econometrica, Econometric Society, vol. 47(2), pages 455-73, March.
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