ERIC Number: EJ1145030
Record Type: Journal
Publication Date: 2017-Jul
Abstractor: As Provided
Reference Count: 61
An Examination of the (Un)Intended Consequences of Performance Funding in Higher Education
Umbricht, Mark R.; Fernandez, Frank; Ortagus, Justin C.
Educational Policy, v31 n5 p643-673 Jul 2017
Previous studies have shown that state performance funding policies do not increase baccalaureate degree production, but higher education scholarship lacks a rigorous, quantitative analysis of the unintended consequences of performance funding. In this article, we use difference-in-differences estimation with fixed effects to evaluate performance funding in Indiana. We find that performance funding did not increase the number of graduates and instead led to declining admission rates and increased selectivity at Indiana's public universities. When compared with surrounding states, we find limited evidence that the effects of performance funding could disproportionately limit college access for Indiana's low-income and minority applicants.
Descriptors: Higher Education, Performance Contracts, Funding Formulas, State Policy, State Aid, Graduation Rate, Declining Enrollment, Policy Analysis, Statistical Analysis, College Outcomes Assessment, Selective Admission, Minority Group Students, Socioeconomic Status, Access to Education, School Surveys, School Statistics, Predictor Variables, Case Studies
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Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Authoring Institution: N/A
Identifiers - Location: Indiana