508
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Investing in the Workforce: The Impact of Performance-Based Funding on Student Earnings Outcomes

ORCID Icon, ORCID Icon, &
Pages 172-199 | Received 31 Mar 2022, Accepted 15 Nov 2022, Published online: 10 Feb 2023

References

  • Andrews, M., & Moynihan, D. P. (2002). Why reforms do not always have to “work” to succeed: A tale of two managed competition initiatives. Public Performance & Management Review, 25(3), 282–297. https://doi.org/10.1080/15309576.2002.11643662
  • Baker, D., Rosinger, K., Ortagus, J., & Kelchen, R. (2020). Trends in state funding for student financial aid. InformEd States.
  • Birdsall, C. (2018). Performance management in public higher education: Unintended consequences and the implications of organizational diversity. Public Performance & Management Review, 41(4), 669–695. https://doi.org/10.1080/15309576.2018.1481116
  • Borusyak, K. (2021). EVENT_PLOT: Stata module to plot the staggered-adoption diff-in-diff (“event study”) estimates. https://ideas.repec.org/c/boc/bocode/s458958.html
  • Borusyak, K., Jaravel, X., & Spiess, J. (2021). Revisiting event study designs: Robust and efficient estimation. https://sites.google.com/view/borusyak/research
  • Butts, K. (2022). did2s. https://github.com/kylebutts/did2s_stata
  • Cameron, A. C., & Miller, D. L. (2015). A practitioner’s guide to cluster-robust inference. The Journal of Human Resources, 50(2), 317–372. https://doi.org/10.3368/jhr.50.2.317
  • Cantwell, B., & Taylor, B. J. (2020). Political rancor and educational inequality: Why building consensus is necessary to renew American higher education. Change: The Magazine of Higher Learning, 52(3), 68–72. https://doi.org/10.1080/00091383.2020.1745607/
  • Council of Economic Advisers. (2015). Using federal data to measure and improve the performance of U.S. institutions of higher education. Office of the President of the United States.
  • Cummings, K., Laderman, S., Lee, J., Tandberg, D., & Weeden, D. (2021). Investigating the impacts of state higher education appropriations and financial aid. State Higher Education Executive Officers Association.
  • Dougherty, K. J., Jones, S. M., Lahr, H., Natow, R. S., Pheatt, L., & Reddy, V. (2016). Performance funding for higher education. Johns Hopkins University Press.
  • Favero, N., & Rutherford, A. (2019). Will the tide lift all boats? Examining the equity effects of performance funding policies in U.S. higher education. Research in Higher Education, 61(1), 1–25. https://doi.org/10.1177/016146811812000605
  • Federal Reserve Bank of New York. (2021). Quarterly report on household debt.
  • Fryer, R. G., Pager, D., & Spenkuch, J. L. (2013). Racial disparities in job finding and offered wages. The Journal of Law and Economics, 56(3), 633–689. https://doi.org/10.1086/673323
  • Furquim, F., Corral, D., & Hillman, N. (2020). A primer for interpreting and designing difference-in- differences studies in higher education research. In L. Perna (Ed.), Higher education: Handbook of theory and research (Vol. 35, pp. 1–58). Springer.
  • Gaddis, S. M. (2015). Discrimination in the credential society: An audit study of race and college selectivity in the labor market. Social Forces, 93(4), 1451–1479. https://doi.org/10.1093/sf/sou111
  • Gándara, D., & Rutherford, A. (2018). Mitigating unintended impacts? The effects of premiums for underserved populations in performance-funding policies for higher education. Research in Higher Education, 59(6), 681–703. https://doi.org/10.1007/s11162-017-9483-x
  • Gándara, D., & Rutherford, A. (2020). Completion at the expense of access? The relationship between performance-funding policies and access to public 4-year universities. Educational Researcher, 49(5), 321–334. https://doi.org/10.3102/0013189X20927386
  • Gardner, J. (2021). Two-stage differences in differences. https://jrgcmu.github.io/2sdd_current.pdf
  • Goodman-Bacon, A. (2021). Difference-in-differences with variation in treatment timing. Journal of Econometrics, 225(2), 254–277. https://doi.org/10.1016/j.jeconom.2021.03.014
  • Hagood, L. P. (2019). The financial benefits and burdens of performance funding in higher education. Educational Evaluation and Policy Analysis, 41(2), 189–213. https://doi.org/10.3102/0162373719837318
  • Hillman, N. W., Fryar, A. H., & Crespín-Trujillo, V. (2018). Evaluating the impact of performance funding in Ohio and Tennessee. American Educational Research Journal, 55(1), 144–170. https://doi.org/10.3102/0002831217732951
  • Hillman, N. W., Tandberg, D. A., & Fryar, A. H. (2015). Evaluating the impacts of “new” performance funding in higher education. Educational Evaluation and Policy Analysis, 37(4), 501–519. https://doi.org/10.3102/0162373714560224
  • Hillman, N. W., Tandberg, D. A., & Gross, J. P. K. (2014). Performance funding in higher education: Do financial incentives impact college completions? The Journal of Higher Education, 85(6), 826–857. https://doi.org/10.1353/jhe.2014.0031
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
  • Kelchen, R. (2018a). Do performance-based funding policies affect underrepresented student enrollment? The Journal of Higher Education, 89(5), 702–727. https://doi.org/10.1080/00221546.2018.1434282
  • Kelchen, R. (2018b). Higher education accountability. Johns Hopkins University Press.
  • Kelchen, R. (2019). Merging data to facilitate analyses. New Directions for Institutional Research, 181, 59–72. https://doi.org/10.1002/ir.20298
  • Kelchen, R., Rosinger, K. O., & Ortagus, J. (2019). How to create and use state-level policy data sets in education research. AERA Open, 5(3), 1–14. https://doi.org/10.1177/2332858419873619
  • Laderman, S., & Weeden, D. (2020). State higher education finance FY 2019. State Higher Education Executive Officers Association.
  • Li, A. Y. (2017). Covet thy neighbor or “reverse policy diffusion”? State adoption of performance funding 2.0. Research in Higher Education, 58(7), 746–771. https://doi.org/10.1007/s11162-016-9444-9
  • Li, A. Y. (2020). Performance funding policy impacts on STEM degree attainment. Educational Policy, 34(2), 312–349. https://doi.org/10.1007/s11162-016-9444-9
  • Li, A. Y., & Kennedy, A. I. (2018). Performance funding policy effects on community college outcomes: Are short-term certificates on the rise? Community College Review, 46(1), 3–39. https://doi.org/10.1177/0091552117743790
  • Lingo, M., Kelchen, R., Baker, D., Rosinger, K., Ortagus, J., & Wu, J. (2021). The landscape of state funding formulas for public colleges and universities. InformEd States.
  • Li, A. Y., & Ortagus, J. C. (2019). Raising the stakes: Impacts of the Complete College Tennessee Act on underserved student enrollment and sub-baccalaureate credentials. The Review of Higher Education, 43(1), 295–333. https://doi.org/10.1353/rhe.2019.0097
  • Liu, S. (2015). Spillovers from universities: Evidence from the land-grant program. Journal of Urban Economics, 87, 25–41. https://doi.org/10.1016/j.jue.2015.03.001
  • McKinney, L., & Hagedorn, L. S. (2017). Performance-based funding for community colleges: Are colleges disadvantaged by serving the most disadvantaged students? The Journal of Higher Education, 88(2), 159–182. https://doi.org/10.1080/00221546.2016.1243948
  • Melguizo, T., & Wolniak, G. C. (2012). The earnings benefits of majoring in STEM fields among high achieving minority students. Research in Higher Education, 53(4), 383–405. https://doi.org/10.1007/s11162-011-9238-z
  • Miller, G. N. S., & Morphew, C. C. (2017). Merchants of optimism: Agenda-setting organizations and the framing of performance-based funding for higher education. The Journal of Higher Education, 88(5), 754–784. https://doi.org/10.1080/00221546.2017.1313084
  • Ortagus, J. C., Kelchen, R., Rosinger, K. O., & Voorhees, N. (2020). Performance-based funding in American higher education: A systematic synthesis of the intended and unintended consequences. Educational Evaluation and Policy Analysis, 42(4), 520–550. https://doi.org/10.3102/0162373720953128
  • Ortagus, J., Rosinger, K., & Kelchen, R. (2021). InformEd States performance-based funding policies dataset. InformEd States. https://informedstates.org/data
  • Quillian, L., Lee, J. J., & Oliver, M. (2020). Evidence from field experiments in hiring shows substantial additional racial discrimination after the callback. Social Forces, 99(2), 732–759. https://doi.org/10.1093/sf/soaa026
  • Quillian, L., Pager, D., Hexel, O., & Midtbøen, A. H. (2017). Meta-analysis of field experiments shows no change in racial discrimination in hiring over time. Proceedings of the National Academy of Sciences, 114(41), 10870–10875. https://doi.org/10.1073/pnas.1706255114
  • Rabovsky, T. M. (2012). Accountability in higher education: Exploring impacts on state budgets and institutional spending patterns. Journal of Public Administration Research and Theory, 22(4), 675–700. https://doi.org/10.1093/jopart/mur069
  • Rosinger, K., Meyer, K., & Wang, J. (2021). Leveraging insights from behavioral science and administrative burden in free college program design: A typology. Journal of Behavioral Public Administration, 4(2), 1–26. https://doi.org/10.30636/jbpa.42.197
  • Rosinger, K., Ortagus, J., Kelchen, R., Cassell, A., & Brown, L. (2022). New evidence on the evolution and landscape of performance funding in higher education. The Journal of Higher Education, 93(5), 735–768. https://doi.org/10.1080/00221546.2022.2066269
  • Roth, J., Sant’Anna, P. H. C., Bilinski, A., & Poe, J. (2022). What’s trending in difference-in-differences? A synthesis of the recent econometrics literature. https://jonathandroth.github.io/assets/files/DiD_Review_Paper.pdf
  • Serban, A. M., & Burke, J. C. (1998). Meeting the performance funding challenge: A nine-state comparative analysis. Public Productivity & Management Review, 22(2), 157–176. https://doi.org/10.2307/3381031
  • Shin, J. C., & Milton, S. (2004). The effects of performance budgeting and funding programs on graduation rate in public four-year colleges and universities. Education Policy Analysis Archives, 12(22), 1–26. https://doi.org/10.14507/epaa.v12n22.2004
  • Stolzenberg, E. B., Aragon, M. C., Romo, E., Couch, V., McLennan, D., Eagan, M. K., & Kang, N. (2020). The American freshman: National norms fall 2019. Higher Education Research Institute, University of California-Los Angeles.
  • Sun, L., & Abraham, S. (2020). Estimating dynamic treatment effects in event studies with heterogeneous treatment effects. MIT Economics. http://economics.mit.edu/files/14964
  • Thompson, J. R. (1999). Devising administrative reform that works: The example of the reinvention lab program. Public Administration Review, 59(4), 283–293. https://doi.org/10.2307/3110111
  • Toutkoushian, R. K., & Paulsen, M. B. (2016). Economics of higher education: Background, concepts, and applications. Springer.
  • Umbricht, M. R., Fernandez, F., & Ortagus, J. C. (2017). An examination of the (un)intended consequences of performance funding in higher education. Educational Policy, 31(5), 643–673. https://doi.org/10.1177/0895904815614398
  • Ward, J., & Ost, B. (2021). The effect of large-scale performance-based funding in higher education. Education Finance and Policy, 16(1), 92–124. https://doi.org/10.1162/edfp_a_00300
  • Webber, D. A. (2016). Are college costs worth it? How ability, major, and debt affect the returns to schooling. Economics of Education Review, 53, 296–310. https://doi.org/10.1016/j.econedurev.2016.04.007
  • Weerts, D. J., & Ronca, J. M. (2012). Understanding differences in state support for higher education across states, sectors, and institutions: A longitudinal study. The Journal of Higher Education, 83(2), 155–185. https://doi.org/10.1080/00221546.2012.11777238
  • Zerquera, D., & Ziskin, M. (2020). Implications of performance-based funding on equity-based missions in US higher education. Higher Education, 80(6), 1153–1174. https://doi.org/10.1007/s10734-020-00535-0
  • Zhang, L., & Ness, E. C. (2010). Does state merit-based aid stem brain drain? Educational Evaluation and Policy Analysis, 32(2), 143–165. https://doi.org/10.3102/0162373709359683

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.