Labor Market Outcomes and Postsecondary Accountability: Are Imperfect Metrics Better than None?

54 Pages Posted: 5 Dec 2016 Last revised: 9 Jul 2021

See all articles by Veronica Minaya

Veronica Minaya

Columbia University - Teachers' College

Judith Scott-Clayton

Columbia University

Date Written: December 2016

Abstract

Policymakers at the state and federal level are increasingly pushing to hold institutions accountable for the labor market outcomes of their students. There is no consensus, however, on how such measures should be constructed, or how the choice of measure may affect the resulting institutional ratings. Using state administrative data that links postsecondary transcripts and in-state quarterly earnings and unemployment records over more than a decade, we construct a variety of possible institution-level labor market outcome metrics. We then explore how sensitive institutional ratings are to the choice of labor market metric, length of follow-up, and inclusion of adjustments for student characteristics. We also examine how labor market metrics compare to the academic-outcome-based metrics that are more commonly incorporated into state accountability systems. We conclude that labor market data provides information that is quite distinct from students’ academic outcomes. Institutional ratings based on labor market outcomes, however, are quite sensitive to the specific metric. The choice of metric and length of follow up appear to matter much more than compositional adjustments. Our findings suggest a cautious approach: while a mix of feasible labor market metrics may be better than none, reliance on a single metric, especially if measured very early, may undermine policymakers’ ongoing efforts to accurately quantify institutional performance.

Suggested Citation

Minaya, Veronica and Scott-Clayton, Judith, Labor Market Outcomes and Postsecondary Accountability: Are Imperfect Metrics Better than None? (December 2016). NBER Working Paper No. w22880, Available at SSRN: https://ssrn.com/abstract=2880319

Veronica Minaya (Contact Author)

Columbia University - Teachers' College ( email )

525 W. 120th St.
New York, NY 10027
United States

Judith Scott-Clayton

Columbia University ( email )

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