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Do Performance-Based Funding Policies Affect Underrepresented Student Enrollment?

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  • Robert Kelchen

Abstract

More states are using performance-based funding (PBF) systems in an effort to incentivize public colleges to operate more effectively. Responding to concerns about equity, states are also adopting provisions that encourage colleges to serve more students who at risk of not completing college. In this paper, I examine whether PBF policies in general—and more specifically policies that have provisions designed to incentivize colleges to enroll underrepresented students—are associated with the number of lower-income, underrepresented minority, and adult students enrolled at four-year public colleges. Using a generalized difference-in-difference framework, I find little evidence that PBF systems as a whole meaningfully affect underrepresented student enrollment. However, the presence of bonuses for serving at-risk students appears to help mitigate any efforts to enroll a more advantaged student body that may be present in other PBF systems.

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  • Robert Kelchen, 2018. "Do Performance-Based Funding Policies Affect Underrepresented Student Enrollment?," The Journal of Higher Education, Taylor & Francis Journals, vol. 89(5), pages 702-727, September.
    • Handle: RePEc:taf:uhejxx:v:89:y:2018:i:5:p:702-727
    DOI: 10.1080/00221546.2018.1434282
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    Cited by:

    1. Kelchen, Robert & Ortagus, Justin & Rosinger, Kelly & Cassell, Alex, 2022. "The effects of state performance funding policies on student loan debt," Economics of Education Review, Elsevier, vol. 91(C).
    2. Tommaso Agasisti & Ekaterina Abalmasova & Ekaterina Shibanova & Aleksei Egorov, 2019. "The Causal Impact Of Performance-Based Funding On University Performance: Quasi-Experimental Evidence From A Policy In Russian Higher Education," HSE Working papers WP BRP 221/EC/2019, National Research University Higher School of Economics.
    3. Nathan Favero & Amanda Rutherford, 2020. "Will the Tide Lift All Boats? Examining the Equity Effects of Performance Funding Policies in U.S. Higher Education," Research in Higher Education, Springer;Association for Institutional Research, vol. 61(1), pages 1-25, February.
    4. Dian-Fu Chang & Angel Chang, 2024. "Analysis of the Influence of Fund Allocation and Sustainable Academic Efficiency Based on a Transformation of Public Goods in Higher Education," Sustainability, MDPI, vol. 16(5), pages 1-21, February.
    5. Justin C. Ortagus & Kelly Ochs Rosinger & Robert Kelchen & Garam Chu & Mitchell Lingo, 2023. "The Unequal Impacts of Performance-Based Funding on Institutional Resources in Higher Education," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(5), pages 705-739, August.
    6. Xiaodan Hu & Pedro Villarreal, 2019. "Public Tuition on the Rise: Estimating the Effects of Louisiana’s Performance-Based Funding Policy on Institutional Tuition Levels," Research in Higher Education, Springer;Association for Institutional Research, vol. 60(5), pages 636-669, August.

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