On January 27, 2012 at the University of Michigan, President Obama laid out his vision for a federal initiative that would reward colleges and universities with increases in federal student aid if colleges restrained cost increases and increased their accountability to the public . At the heart of this initiative is a new “College Scorecard” that, according to the White House, will “assist prospective student and their families in comparing colleges before they choose using key measures of college affordability and value.” There are five measures in the score card, beginning with the cost of attendance, a series of four graduation rates, student loan repayment rates and student loan debt. This presentation focuses on the fifth measure, “Earnings Potential”.
The “Earnings Potential” measure, unlike the other measures in the scorecard, is not specified. In this presentation we will briefly outline the renewed interest in the labor market experience of college students. Then we will report on our experience following up the labor market experience of 44,000 students from California State University, Northridge using a state-wide earnings data base and university transcript file. This a powerful method allowed us to find over 76% of graduates in first year after exit and 72% five years later. We will describe in detail the method we developed for transparently measuring the earnings and labor market experience of college students, both graduates and dropouts. The system we developed can easily track earnings over time, we have earnings data for 20 years on some cohorts. We have measures that go down to the department and program level. Finally, based on our experience, we lay out an agenda for developing a state wide system in California that can produce comparable labor market outcomes on an on-going basis, objectively and cost efficiently, for all segments of higher education, and fill in the blank in the President’s scorecard.
Authors: Richard W. Moore, Kenneth Chapman, Bettina Huber, Mark Shors
Dr. Richard W. Moore currently serves as a professor of management in the College of Business Administration and Economics at California State University, Northridge. His teaching specialties include: organizational behavior, leadership and human resources management at both the graduate and undergraduate level. He has twice won the outstanding teaching award in the College’s MBA program. For six years he was the Director of Graduate Programs in the College of Business. Currently he is teaching Organizational Complexity and Change in university’s first doctoral program in Education. In 2005 Moore was Fulbright Senior Scholar at Bandung Institute of Technology in Bandung, Indonesia.
Dr. Moore is a nationally and internationally recognized expert in measuring the outcomes and performance of public programs, with both quantitative and qualitative methods.. He recently directed a state-wide analysis of One-Stop Career Centers for the California Workforce Investment Board. He is also developing a performance management system for the City of Los Angeles’s FamilySource Network.
Internationally Moore has consulted for the World Bank in East Timor, Qatar and Indonesia since 1988. His work with the World Bank has included project development and evaluation in the education, training and microfinance, as well developing human resource strategy at a national level. He has also worked as a consultant to Deloitt Touche and the government of Hong Kong evaluating Asia’s first displaced worker retraining program.
Dr. Moore has worked as an Analyst on Higher Education Policy Issues since the 1970’s. Recently he wrote a series of papers for the California Postsecondary Education Commission on how to assess the performance of public higher education in California. In the past he has worked on a variety of student aid policies and the role of proprietary institutions in higher education.
Dr. Moore is the author of many scholarly and industry publications. Recently the Upjohn Institute published his book Training That Works an analysis of California’s Employment Training Panel program. He is an experienced trainer working with managers in both the public and private sectors. He received his M.A. and Ph.D. from UCLA.
Professor Kenneth Chapman has been working as a labor economist since receiving his Ph. D. from University of Minnesota in 1986. He has worked as an economics professor at S.U.N.Y. Buffalo, and California State University Northridge. His academic work has been published in American Economic Review , The Journal of Risk and Uncertainty , Law and Contemporary Problems , and elsewhere. An article in Finance Letters won the journal’s 2005 article of the year award.
Recent public policy work includes a series of pamphlets for the California Post Secondary Education Commission dealing with changes in affordability of Californian universities over time, as well as the relationship between per capita income and educational attainment. Most recently, Professor Chapman has participated in a review of the Integrated Service Delivery program for the California Workforce Investment Board. The initial phase of this evaluation is currently available on the CWIB website.