The causal impact of performance-based funding on university performance: quasi-experimental evidence from a policy in Russian higher education

Author:

Agasisti Tommaso1,Abalmasova Ekaterina2,Shibanova Ekaterina3,Egorov Aleksei3

Affiliation:

1. School of Management, Politecnico di Milano, Via Lambruschini 4b, Milan 20156, Italy

2. Laboratory for University Development of Institute of Education, National Research University Higher School of Economics, 16/10 Potapovsky lane, Moscow 101000, Russia

3. Laboratory for University Development of Institute of Education, National Research University Higher School of Economics, 16/10 Potapovsky lane, Moscow 101000, Russia

Abstract

Abstract In most countries implementing structural transformations in their higher education systems, a key goal of policymakers is to tie the amount of public funding to university performance. The present article analyses the Russian performance-based funding (PBF) reform to provide a quasi-experimental assessment of its effects on university performance. To evaluate the causal effect of PBF on university performance, we define the treatment and control groups by distinguishing universities on the basis of changes in their performance-based allocations and estimate the causal effect of the redistribution of public funds between universities as a result of PBF. Results indicate that the performance of universities is indeed affected by the extra funding generated by the reform, although heterogeneity is also at play. In the short term, the new policy has had an impact on the average national exam scores of enrollees showing that it has had encouraged universities to be more selective.

Funder

Basic Research Program at the National Research University Higher School of Economics

RFBR

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics

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