Efforts to improve college-completion rates have dominated higher education policy agendas. Performance-based funding (PBF) intends to improve college completion and links state funding for public colleges and universities to performance measures. One critique of PBF policies is that institutions might restrict student access. This study uses a difference-in-differences design and institution-level data from 2001 to 2014 to examine whether 4-year, public institutions become more selective or enroll fewer underrepresented students under PBF. Our findings, supported by various robustness checks, suggest that institutions subject to PBF enroll students with higher standardized test scores and enroll fewer first-generation students. PBF models tied to institutions’ base funding are more strongly associated with increased standardized test scores and enrollment of Pell students.
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Grads on the go: Measuring college‐specific labor markets for graduates
Abstract This paper introduces a new measure of the labor markets served by colleges and universities across the United States. About 50% of recent college graduates are living and working in the metro area nearest the institution they attended, with this figure climbing to 67% in‐state. The geographic dispersion of alumni is more than twice as great for highly selective 4‐year institutions as for 2‐year institutions. However, more than one quarter of 2‐year institutions disperse alumni more diversely than the average public 4‐year institution. In one application of these data, we find that the average strength of the labor market to which a college sends its graduates predicts college‐specific intergenerational economic mobility. In a second application, we quantify the extent of “brain drain” across areas and illustrate the importance of considering migration patterns of college graduates when estimating the social return on public investment in higher education.
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- Award ID(s):
- 1919425
- PAR ID:
- 10480182
- Publisher / Repository:
- Wiley Online Library
- Date Published:
- Journal Name:
- Journal of Policy Analysis and Management
- ISSN:
- 0276-8739
- Subject(s) / Keyword(s):
- colleges labor markets postsecondary education economic mobility
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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