Measurement of value added in the higher education sector

Measurementof value added in the higher education sector

Accordingto Cunha &amp Miller, there has been pressure on the higher learninginstitutions to measure and disseminate the amount of value they addto the students (65). This culture takes into consideration the needfor the measure of value added to students that capture the higherlearning institutions. In addition, it has to account for thatstudents are enrolling for college with academic backgrounds thatvary. There are varied challenges that are associated with measuringvalue added in these institutions and identify the limitations andpossibilities of using the student-level administrative data as theroot for the measures. This sector has large use of test scores thatare annually standardized as the basis of the value added measures(Cunha &amp Miller, 68).

Thereare several evidences that show that the standardized test scores cancapture differential performance of teachers and higher learninginstitutions, but there are differences that make the K-12 highereducation model impractical. Cunha &amp Miller assert that thequantitative outcomes include graduation rates, persistence rates andpost-college earnings (71). The students also select the higherinstitutions they want to join making it difficult to determine thestudent’s outcomes as a result of the higher institution attendedseparately compared to the effect of past characteristics such as thenatural ability or motivation of a student. In addition, the studentswill specify their learning institutions where there is a lot ofemphasis on discipline-specific knowledge Cunha &amp Miller, 73).

Learninginstitutions try to ensure that they benefit the studentsparticularly by increasing individual utility. In addition, there aregreater choices especially on the job one gets and also makingdecisions such as on health, parenting and marriage. Standardizedtest score offer a practical way that can assist in assessingknowledge. Such tests include ACT’s collegiate Assessment ofAcademic Proficiency, Collegiate Learning Assessment and ETS Measureof Academic Proficiency and Progress (Cunha &amp Miller, 73). TheGPA of a student can also be used to measure the outcomes ofperformance. Policy makers have interest in whether the highereducation benefits the students. Wages and earnings can also be usedto measure the learning institution’s achievement (Cunha &ampMiller, 76).

Privatizationof Education

Accordingto Binelli, Chiara &amp Marta (2013), there are many continuingdebates regarding the privatization of the education sector in areaswhere education has expanded such as for the low and middle-incomenations. Various international bodies have taken part in thisexpansion. IFC (International Financial Corporation) is the topinvestor with more than five hundred million dollars. The individualswho are for the privatization claim that the private sector can be aplatform of increasing education access through efficient supplysince going to the private schools is associated with good grades andachievement in education. The public high school sector, for instanceI Mexico, expanded really faster as compared to the private sector.

Thesystem of education in Mexico serves more than thirty millions ofstudents that are approximately thirty-one percent of the totalpopulation. The education system consists of twelve years six forprimary, three for secondary and three for college. The education forhigh school is offered by the private and public institutions, andthe enrollment is always open. However, there exist few barriers suchas lack of funds particularly for the private high schools. Somestudents are however lucky since they get scholarships through ananti-poverty program in Mexico. Binelli, Chiara &amp Marta (2013),write that there are student loans that only cover the tuition feefor the college education.

Thefinal findings of the study show that attending school in the privatesector has positive effects when wages are considered. The cost ofhaving education at a private school is however high hence only therich families can afford it. Binelli, Chiara &amp Marta (2013),argue that while attending private schools can improve educationaccess efficiently, the implementations of programs that take equityinto concern are the only viable route to increase access toeducation. Such include scholarships and education programs in orderto increase not only the quality of education in public schools butthe performance of the education sector.


Cunha,J.M, and T Miller. &quotMeasuring Value-Added in Higher Education:Possibilities and Limitations in the Use of Administrative Data.&quotEconomicsof Education Review.42 (2014): 64-77. Print.

Binelli,Chiara, and Marta Rubio-Codina. TheReturns to Private Education: Evidence from Mexico.Institute for Fiscal Studies (IFS) London, 2013. Internet resource.