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The impact of New Public Management (NPM) instruments on PhD education

  • Peter Schneider

    ()

  • Dieter Sadowski

    ()

    (Institute for Labour Law and Industrial Relations in the EC, University of Trier)

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    New public governance emphasizes less state, more market and more hierarchy as the cornerstones for effective steering of higher education institutions. Based on an explorative analysis of qualitative and quantitative data of fourteen German and European economics departments, we investigate the steering effects of six new public management (NPM) instruments in the years 2001 to 2002 on subsequent placement success of PhD graduates. Using crisp set Qualitative Comparative Analysis to analyze the data, our results deliver strong support for the positive effects of competition for resources and the partial harmful effects of hierarchy on PhD education. Governance of successful departments is characterized by two solutions: additional funding based on evaluations as one single success factor in each solution or a combination of additional funding based on nationally competitive performance in addition with either no public policy regulations for departments or with no university regulations for departments. Governance of unsuccessful departments is characterized by one solution: university regulations for departments or a combination of no additional funding based on nationally competitive performance in addition with no additional funding based on evaluations. Our results strengthen the strong impact of selected competitive mechanisms as an effective indirect governance instrument and the partially detrimental effects of state regulation and more hierarchy as elements of direct governance instruments for successful PhD education.

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    File URL: http://www.iaaeg.de/images/DiscussionPaper/2008_03.pdf
    File Function: Revised version, 2008
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    Paper provided by Institute of Labour Law and Industrial Relations in the European Union (IAAEU) in its series IAAEG Discussion Papers until 2011 with number 200803.

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    Length: 29 pages
    Date of creation: Mar 2008
    Date of revision:
    Handle: RePEc:iaa:wpaper:200803
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    1. Hartog, Joop & Vijverberg, Wim P.M., 2007. "On compensation for risk aversion and skewness affection in wages," Labour Economics, Elsevier, vol. 14(6), pages 938-956, December.
    2. Telhado Pereira, Pedro & Silva Martins, Pedro, 2002. "Is there a return-risk link in education?," Economics Letters, Elsevier, vol. 75(1), pages 31-37, March.
    3. Loo,J,van & Grip,A.,de & Steur,M.,de, 2001. "Skills Obsolescence: Causes and Cures," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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    5. Görlich Dennis & Grip Andries de, 2007. "Human Capital Depreciation during Family-related Career Interruptions in Male and Female Occupations," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    6. Charlotte Christiansen & Juanna Schröter Joensen, 2006. "The Risk-Return Trade-Off in Human Capital Investment," Economics Working Papers 2006-02, School of Economics and Management, University of Aarhus.
    7. Hartog, Joop & Vijverberg, Wim P., 2002. "Do Wages Really Compensate for Risk Aversion and Skewness Affection?," IZA Discussion Papers 426, Institute for the Study of Labor (IZA).
    8. Luis Diaz-Serrano & Joop Hartog & Helena Skyt Nielsen, 2008. "Compensating Wage Differentials for Schooling Risk in Denmark," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 711-731, December.
    9. Christian Brzinsky-Fay & Ulrich Kohler & Magdalena Luniak, 2006. "Sequence analysis with Stata," Stata Journal, StataCorp LP, vol. 6(4), pages 435-460, December.
    10. Vella, Francis & Gregory, R. G., 1996. "Selection bias and human capital investment: Estimating the rates of return to education for young males," Labour Economics, Elsevier, vol. 3(2), pages 197-219, September.
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