Arbeitspapier

Performance-related funding of universities: Does more competition lead to grade inflation?

German universities are regarded as being under-financed, inefficient, and performing below average if compared to universities in other European countries and the US. Starting in the 1990s, several German federal states implemented reforms to improve this situation. An important part of these reforms has been the introduction of indicator-based funding systems. These financing systems aimed at increasing the competition between universities by making their pubic funds dependent on their relative performance concerning different output measures, such as the share of students obtaining a degree or the amount of third party funds. This paper evaluates whether the indicator-based funding created unintended incentives, i.e. whether the reform caused grade inflation. Estimating mean as well as quantile treatment effects, we cannot support the hypothesis that increased competition between universities causes grade inflation.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 6073

Klassifikation
Wirtschaft
National Government Expenditures and Education
Analysis of Education
Educational Finance; Financial Aid
Thema
grade inflation
higher education funding
university competition
Hochschulfinanzierung
Bildungsabschluss
Hochschule
Wettbewerb
Schätzung
Deutschland

Ereignis
Geistige Schöpfung
(wer)
Bauer, Thomas K.
Grave, Barbara S.
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2011

Handle
URN
urn:nbn:de:101:1-201111083076
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Bauer, Thomas K.
  • Grave, Barbara S.
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2011

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