Does it Pay Off to Incentivize Universities? – Performance Funding in the German Higher Education System Abstract: This paper analyzes the effect of the introduction of performance-related funding in the German university sector. Starting in the 1990‘s, the federal states of Germany introduced incentive-based funding systems in order to increase universities‘ performance and efficiency. We estimate the eff ects of this reform on four common outcome indicators of the funding models: The number of students and graduates, which are supposed to measure teaching performance, and the number of PhD graduates and the amount of third-party funds, which quantify research output. Using a difference-in-differences estimator, our results suggest that for increasing the outcomes in teaching, a weak incentive is sucient while the research outputs are only aected if the incentive is strong enough. We further identify different responses by university types, which shows that the results are mainly driven by technical colleges. According to our findings, it is crucial to design the funding models carefully to provide the “right” incentives and hence to achieve the underlying goal of the reform
AbstractNo abstract is available for this item.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0457.
Length: 25 pages
Date of creation: Dec 2013
Date of revision:
Find related papers by JEL classification:
- D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
- I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Geeta Kingdon & Francis Teal, 2004.
"Does performance related pay for teachers improve student performance? Some evidence from India,"
Development and Comp Systems
- Kingdon, Geeta Gandhi & Teal, Francis, 2007. "Does performance related pay for teachers improve student performance? Some evidence from India," Economics of Education Review, Elsevier, vol. 26(4), pages 473-486, August.
- Francis Teal & Geeta Kingdon, 2005. "Does performance related pay for teachers improve student performance? Some evidence from India," Economics Series Working Papers GPRG-WPS-014, University of Oxford, Department of Economics.
- Geeta G. Kingdon & Francis Teal, 2002. "Does performance related pay for teachers improve student performance? Some evidence from India," CSAE Working Paper Series 2002-06, Centre for the Study of African Economies, University of Oxford.
- Pedro S. Martins, 2009.
"Individual Teacher Incentives, Student Achievement and Grade Inflation,"
29, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
- Martins, Pedro S., 2009. "Individual Teacher Incentives, Student Achievement and Grade Inflation," IZA Discussion Papers 4051, Institute for the Study of Labor (IZA).
- Pedro S. Martins, 2010. "Individual teacher incentives, student achievement and grade inflation," LSE Research Online Documents on Economics 28285, London School of Economics and Political Science, LSE Library.
- Pedro Martins, 2010. "Individual Teacher Incentives, Student Achievement and Grade Inflation," CEE Discussion Papers 0112, Centre for the Economics of Education, LSE.
- Randall Reback, 2006.
"Teaching to the Rating: School Accountability and the Distribution of Student Achievement,"
0602, Barnard College, Department of Economics.
- 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.
- Adele Atkinson & Simon Burgess & Bronwyn Croxson & Paul Gregg, 2004.
"Evaluating the Impact of Performance-related Pay for Teachers in England,"
The Centre for Market and Public Organisation
04/113, Department of Economics, University of Bristol, UK.
- Atkinson, Adele & Burgess, Simon & Croxson, Bronwyn & Gregg, Paul & Propper, Carol & Slater, Helen & Wilson, Deborah, 2009. "Evaluating the impact of performance-related pay for teachers in England," Labour Economics, Elsevier, vol. 16(3), pages 251-261, June.
- Simon Burgess & Carol Propper & Helen Slater & Deborah Wilson, 2005.
"Who wins and who loses from school accountability? The distribution of educational gain in English secondary schools,"
The Centre for Market and Public Organisation
05/128, Department of Economics, University of Bristol, UK.
- 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.
- Bauer, Thomas K. & Grave, Barbara S., 2011.
"Performance-related Funding of Universities: Does More Competition Lead to Grade Inflation?,"
IZA Discussion Papers
6073, Institute for the Study of Labor (IZA).
- Thomas K. Bauer & Barbara S. Grave, 2011. "Performance-related Funding of Universities – Does more Competition Lead to Grade Inflation?," Ruhr Economic Papers 0288, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Weiler).
If references are entirely missing, you can add them using this form.