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

Listed author(s):
  • Ooghe, Erwin

    ()

    (KU Leuven)

  • Schokkaert, Erik

    ()

    (KU Leuven)

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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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
Handle: RePEc:iza:izadps:dp7420
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  1. 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.
  2. Schokkaert, Erik & Van de Voorde, Carine, 2004. "Risk selection and the specification of the conventional risk adjustment formula," Journal of Health Economics, Elsevier, vol. 23(6), pages 1237-1259, November.
  3. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August.
  4. 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.
  5. Peter Arcidiacono & Cory Koedel, 2014. "Race and College Success: Evidence from Missouri," American Economic Journal: Applied Economics, American Economic Association, vol. 6(3), pages 20-57, July.
  6. Schokkaert, Erik & Van de Voorde, Carine, 2009. "Direct versus indirect standardization in risk adjustment," Journal of Health Economics, Elsevier, vol. 28(2), pages 361-374, March.
  7. Eric A. Hanushek & Margaret E. Raymond, 2005. "Does school accountability lead to improved student performance?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 297-327.
  8. Martin R. West & Paul E. Peterson, 2006. "The Efficacy of Choice Threats Within School Accountability Systems: Results from Legislatively Induced Experiments," Economic Journal, Royal Economic Society, vol. 116(510), pages 46-62, 03.
  9. Dennis Epple & Richard Romano, 2008. "Educational Vouchers And Cream Skimming," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1395-1435, November.
  10. 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.
  11. Gadi Barlevy & Derek Neal, 2012. "Pay for Percentile," American Economic Review, American Economic Association, vol. 102(5), pages 1805-1831, August.
  12. Fleurbaey, Marc, 2012. "Fairness, Responsibility, and Welfare," OUP Catalogue, Oxford University Press, number 9780199653591.
  13. 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.
  14. Semykina, Anastasia & Wooldridge, Jeffrey M., 2010. "Estimating panel data models in the presence of endogeneity and selection," Journal of Econometrics, Elsevier, vol. 157(2), pages 375-380, August.
  15. 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.
  16. 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.
  17. 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.
  18. 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 455-473, March.
  19. Figlio, David N. & Winicki, Joshua, 2005. "Food for thought: the effects of school accountability plans on school nutrition," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 381-394, February.
  20. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  21. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Other publications TiSEM 7ec34a6c-1d84-4052-971c-d, Tilburg University, School of Economics and Management.
  22. repec:mpr:mprres:6364 is not listed on IDEAS
  23. 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.
  24. Ladd, Helen F. & Walsh, Randall P., 2002. "Implementing value-added measures of school effectiveness: getting the incentives right," Economics of Education Review, Elsevier, vol. 21(1), pages 1-17, February.
  25. 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.
  26. Eric A. Hanushek & Margaret E. Raymond, 2004. "The Effect of School Accountability Systems on the Level and Distribution of Student Achievement," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 406-415, 04/05.
  27. Meyer, Robert H., 1997. "Value-added indicators of school performance: A primer," Economics of Education Review, Elsevier, vol. 16(3), pages 283-301, June.
  28. Chiang, Hanley, 2009. "How accountability pressure on failing schools affects student achievement," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1045-1057, October.
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