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Measuringvalue-addedinhighereducation——PossibilitiesandlimitationsintheuseofadministrativedataReasonThegrowinginterestforbothfundingandincentivizingpurposesinhighereducationSolutionAgeneralmethodologyformeasuringthevalueaddedofinstitutionsofhighereducationDataInformationfromdifferentadministrativesourcesinthestateofTexas1.Introduction

Statisticallydistinguishingvalue-addedestimatesbetweenindividualinstitutionResultHighereducationinstitutionalperformanceismultidimensionalobjectivefunction.Asystemofmultiplemetricscapturingvariousdimensionsofinstitutionalperformance1.Introduction

2.DefiningvalueinhighereducationCollegesaimtoproduceawiderangeofbenefitsforstudents.ImpartsknowledgeandskillsEconomicproductivityWagesincreasestudents'individualutilityoffergreaterchoicesinthetypeofworkimproveabilitytomakedecisionsaboutmarriage,health,andparentingincreasesenseofgeneralhappinessfosternon-pecuniarybenefits

Knowledgevotingandsupportingfreespeechimprovecivicsocietyfosterpositiveexternalities3.MeasuringvalueaddedinhighereducationStandardizedtestsGradepointaverage(GPA)GraduationandpersistenceWages/earningsInstitutionalperformanceDisciplines&coursesAlongtimelag3.MeasuringvalueaddedinhighereducationThecalculationmodelYisisanoutcomeforstudentiwhoattendedschoolsXi,PREisavectorofobservablepre-enrollmentstudentcharacteristicsβsarecoefficientsofschoolandcanchangeovertimeEsareasetofindicatorsforenrollmentatvariouscollegesεisareotherindicators4.DataandsampleThevalue-addedmodelusingrichadministrativedatafromthestateofTexasthattracksstudentsfromhighschool,throughcollege,andintothelaborforce.Itisalargeanddiversestatethatcloselymirrorsthedemographicandsocio-economicmake-upoftheU.S.population.ThevastmajorityofTexansattendcollegeinstate,thishelpsmitigatesampleselectionissues.Reason4.DataandsampleSummarizesthedata,forboththesampleofallenrolleesandonlyenrolleeswithnon-zeroUI(UnemploymentInsurance)earnings.5.ResultsEarningsdifferencesofenrolleesatTexasfour-yearpubliccolleges.5.ResultsColumn1:

AbasecasethatcanbecomparedwithmodelsthatcontrolforselectionintocollegesColumn2:

RaceandgendercontrolsColumn3:HighschoolfixedeffectsandindicatorsforcoursestakenduringhighschoolColumn4:SATscoreand

variousstudentandfamilydemographicsColumn5:ApplicationgroupfixedeffectsShrinktherangeofpointestimatesReducesignificantdifferences

5.ResultsThesignificantdifferencesinearningsbetweencollege.5.ResultsGraduationandpersistencedifferencesofenrolleesatTexasfour-yearpubliccolleges5.ResultsScatterplotsofthecoefficientsonschoolfixedeffectsintheearnings,graduation,andpersistencemodels.5.ResultsCorrelationsbetweentheschoolcoefficients(PanelA)andtherank-orderofschoolcoefficients(PanelB)fromtheearnings,graduation,andpersistencemodels.Thecorrelationisstronglypositivebetweenallthemeasuresandranks,withthestrongestassociationbetweenthegraduationandpersistencemodels.6.ConclusionandrecommendationInformationaboutthepre-enr

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