16 Evidence of Selection Bias
Participants are more likely to be male, by a wide margin.
Participation by gender holds constant around 90 percent.
Students are in the 80th percentile in math and science.
17
LABOR SUPPLY
18 Unemployment Insurance
Wages for employees in most sectors.
Provided on a quarterly basis.
Includes multiple jobs.
Excludes workers in some sectors (e.g., military).
Does not include hourly wages or full-time status.
Only includes employees within Iowa.
19 Matching Wage Data
• Educational
NSC • Match
data • Remove wage data
students
MIS IWD
20 Human Capital Theory
Wages
Completers
Leavers
Direct
Time
Costs
21 Returns on Investment
Σ
T
yi - xi
t
-C
(1+r)
t=1
22 Returns on Investment
Track wages over a set period of time, T.
Find the difference between wages between completers and leavers
on the student level.
Find the cost of tuition.
If you assert an interest rate, r, then solve to find Net Present Value.
If the interest rate if left unknown, then solve to find the Internal Rate
of Return.
23 Methodology
Assemble a cohort of graduates (completers) and those who left
college without a degree (leavers).
Stagger the cohorts so completers are finishing their final year in
college as leavers are in their first year in the workforce.
Exclude students who are found in any postsecondary institution.
Estimate the tuition expenses for completers in their final year.
Cohorts from 2002 and 2006.
24 Wages by Year
Net Present Value for Completers was $3,131.
Internal Rate of Return was 6 percent.
25
NPV
Returns by Cluster
26 Returns by Select Clusters
28 In-state Retention Rate
Out-of-state In-state
School
Working
School
Working
HIGHER EDUCATION
ACCOUNTABILITY
31 Success Rate
60%
50%
40%
30%
20%
10%
0%
2005 2006
Slightly over 52 percent of first-time, full-time students entering in 2006
either transferred or graduated within three years (by 2008).
32
33 Graduation Rate
50%
40%
30%
20%
10%
0%
2001 2002 2003 2004 2005 2006
The three year graduation rate for first-time, full-time students rose slightly to
39.1 percent for the 2006 cohort. The graduation rate has fluctuated, but
stayed ahead of the national graduation rate (33 percent).
34 Time to Degree
2004
2003
0 1 2
Time-to-degree rose slightly to 2.4 years for the 2004 cohort from 2.3 years.
35 Accountability Systems
Measuring the effectiveness of institutions through student outcomes.
Desirable qualities of accountability measures:
1. Specifically measures the effectiveness of the institution, not
other factors.
2. Measures improvement.
3. Flexible to accommodate a variety of outcomes.
The current traditional measures cannot capture these elements.
36 Accountability Systems
Issues with graduation/success rate:
1. Denominator debate.
2. Selection bias.
3. Positive feedback mechanism.
Solutions: Use the same methods that assist with Project Lead The
Way evaluations.
37 Estimating Success
50% 50% 50% 50%
38 Simulated Example
OBTAINING
DATA
40 Obtaining Data
Contact your major professor and/or the Department of Education.
Education data can be obtained from the Department of Education,
other data (e.g., UI records) will need special permission.
Data is distributed de-identified and must be returned or destroyed at
the completion of the research study.
Obtaining data is relatively low-cost, nominal fee (<$100) for a secure
flash drive.
Tom Schenk Jr.
Consultant – Institutional Effectiveness & Accountability
Iowa Department of Education
Phone: 515-281-3753
E-mail: tom.schenk@iowa.gov
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