Measuring Value-Added in Higher Education: Possibilities and Limitations in the Use of Administrative Data
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Authors
Cunha, Jesse M.
Miller, Trey
Subjects
higher education
value-added
administrative data
graduation
persistence
earnings
value-added
administrative data
graduation
persistence
earnings
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Date of Issue
2012-11-15
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Abstract
This paper develops a general methodology for measuring value added of institutions of higher education using commonly-available administrative data. Our approach recognizes the data limitations and selection problems inherent in higher education, and highlights the challenges these issues pose for education policy. Combining information from different administrative sources in the state of Texas, we follow the universe of Texas college applicants from the time of application (pre-enrollment) through public college and into the labor market. In specifications that do not control for selection, we find we find large, significant differences across colleges in terms of persistence, graduation, and earnings; however, these differences decrease substantially when we control for selection. In light of the growing interest in using value-added measures in higher education for both funding and incentivizing purposes, our methodology offers unique evidence and lessons for policy makers.
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Working Paper
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Graduate School of Business & Public Policy (GSBPP)
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.