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1、EconomicsofEducationReview31 (2012) 1162–1176ContentslistsavailableatSciVerseScienceDirectEconomicsofEducationReviewjournalhomepage:www.elsevier.com/locate/econedurevUniversityrankingsinaction?Theimportanceofrankingsanda
2、n excellencecompetitionforuniversitychoiceofhigh-abilitystudentsJuliaHorstschräer ?CentreforEuropeanEconomicResearch(ZEW),L7,1,68161Mannheim,Germanyar ti c l e i nf oArticlehistory:Received29September2011Rec
3、eivedinrevisedform31July2012Accepted31July2012JELclassification:I21I23I28C25Keywords:HighereducationUniversitychoiceCollegeadmissionConditionallogitabs t r ac tThis paperanalyzeshowhigh-abilitystudentsrespondto diffe
4、rentindicatorsof univer-sityqualitywhen applyingfor a university.Are prospectivestudentsinfluencedby qualityindicatorsof a universityrankingor by an excellencestatus awardedwithin a nationwidecompetition?And
5、if so, are somequalitydimensions,e.g. researchreputation,mentor-ing,facultyinfrastructure,students’satisfactionor the excellencestatus,moreimportantthanothers?In order to addressthese questions,Iestimatea rando
6、mutility model usingadministrativeapplicationdata of all Germanmedicalschools.As identificationrelies onthevariationin qualityindicatorsover time, Ican disentanglethe responseto changing qualityindicatorsfrom
7、the commonknowledgeregardinguniversityattractiveness.Resultsshowthatthe ranking providesmorerelevantinformationin the quality dimensionsmentoring,facultyinfrastructureand the overallstudents’satisfactionthan with
8、 respect to research.© 2012 Elsevier Ltd. All rights reserved.1.IntroductionEveryyear,secondaryschoolgraduatesthatwanttopursuehighereducationhavetochooseauniversity.Thisisacrucialdecisionfortheirfuturetrajectorie
9、smadeunderimperfectinformationregardingtheirownability,univer-sityqualityandthecorrespondingreturnstoadegree.Fromaneconomist’spointofview,itisveryimportantthatprospectivestudentsapplyfortheuniversitiesthatfitthembestinor
10、dertomaximizehumancapitalproductionandtominimizedrop-outs.Therefore,universityrankingsandindicatorsofexcellencemayprovidevaluableinformationforthedecisionofprospectivestudents.? Correspondenceaddress:CentreforEuropeanEco
11、nomicResearch(ZEW),P.O.Box103443,D-68034Mannheim,Germany.Tel.:+496211235196;fax:+496211235225.E-mailaddress:hortschraeer@zew.deInthispaper,Ianalyzewhetherhigh-abilitystudentsinfactusedifferentuniversityqualityindicatorsa
12、sasourceofinformationandwhethersomequalitydimensionsaremoreimportantforanapplicant’sdecisionthanothers.Forthispurpose,IestimatetheeffectofdifferentqualityindicatorsfromaGermanuniversityranking–aswell-establishedastheU.S.
13、News&WorldReportrankingintheU.S.–ontheuniversityapplicationdecisionofhigh-abilitystudents.Asanadditionalqualityindicator,IuseanexcellencecompetitionrunbytheGermangovernment,whichdeclaredsomeuniversitiestobe“excellenc
14、euniver-sities”andgrantedthemextramoney.Identificationreliesonthevariationinducedbychangesintherankingindica-torsovertimeandtheintroductionoftheexcellencestatus.Thisallowsmetodisentangletheresponsetothenewinformationprov
15、idedbythequalityindicatorsfromthetime-constant,commonknowledgeregardingtheoveralluniversityattractiveness.IncontrasttotheU.S.highereducationsystem,theGer-mansystemistraditionallybasedonpublicuniversities0272-7757/$–seefr
16、ontmatter ©2012 Elsevier Ltd. All rights reserved.http://dx.doi.org/10.1016/j.econedurev.2012.07.0181164 J.Horstschräer/EconomicsofEducationReview31 (2012) 1162–1176overallquality.AsIdonotcontrolforthequalitysc
17、aleunderlyingtheranking,theeffectofinterest,however,isnotthepuresignallingeffectoftherankingbutindicatesthestudents’reactionstonewinformationonuniversityquality.3Iuseaverycomprehensive,administrativedatasetpro-videdbythe
18、Germancentralagency(‘ZVS’)administeringtheapplicationprocessformedicalstudies,whichissubse-quentlycalledcentralclearinghouse.4 ThedatasetcontainsindividualinformationonallapplicantsatGermanmedi-calschoolsfortheyears2002–
19、2008.NotethatstudentsinGermanyapplyformedicalschooldirectlyafterfinishingtheirsecondaryeducationandthatmedicalschoolpro-gramstakeaboutsixyearstoearna“Master-like”degreewithoutawardinganintermediate“Bachelor-like”degreein
20、between.Thedatasetofferstwoimportantadvantagesformy analysis.First,Icanstudytheapplicationratherthanthematriculationdecision.Thisisimportantastheapplicationdecisionislessdrivenbysupplyconstraints.Second,theindividualnat
21、ureofthedataallowsme tocon-trolforthedistancebetweenastudent’shometownandeachuniversityinthechoiceset,whichisshowntobeaveryimportantdeterminantoftheapplicationdecision.Animportantlimitationofthedatais,however,thatmy an
22、al-ysesneedtofocusonhigh-abilityapplicants,astheotherprospectivestudentsareobjecttostrategicapplicationbehaviorandthereforedonotstatetheirtruepreferences.Theresultsshowthatachievingexcellencestatusincreasestheoddstoapply
23、forhigh-abilitystudentsby19%ofthepriorodds.Hence,theexcellencecompeti-tionrunbytheGermangovernmentsignificantlyaffectstheuniversitychoiceofhigh-abilitystudents.Regardingtherankingindicators,ahighrankwithrespecttostu-dent
24、s’satisfactionincreasestheoddstoapply,andalowrankinmentoring,facultyinfrastructureaswellasintheindicatorstudents’satisfactionlowerstheodds.TheresearchorientedindicatorsoftheGermanuniversityrankingshownosignificantinfluen
25、ceontheapplicationdecisionofhigh-abilitystudents.Researchqualitynev-erthelessprovestobeaveryimportantdeterminantforchoosingauniversity.However,researchqualityseemstobecommonknowledgeandthereforepartofthegeneralattractive
26、nessofauniversity.Inthiscase,thenon-researchrankingindicatorsprovidemorerelevantinformationfortheuniversitychoiceofhigh-abilitystudentsthantheresearch-orientedindicators.Publishingmultidimensionaluniversityrankings,thus,
27、widensthebasisofinformationforawell-informeduniversitychoice.Theremainderofthepaperisstructuredasfollows.Inthenextsection,IgiveamoredetailedoverviewontheinstitutionalbackgroundoftheGermanuniversity3 Note,changesinquality
28、thatarenotreflectedintherankingresultscouldalsoinfluenceuniversitychoice,ifstudentsareinformedaboutthesechangesinquality.However,itisverydifficultforstudentstogainaddi-tionalqualityinformationthatarenotpartoftherankingor
29、theoverall,commonlyknownuniversityquality.4 InGermany,theuniversityapplicationprocessofthesubjectsmedicine,pharmacology,veterinarymedicine,dentistry,psychologyandbiologyhasbeenadministeredbyacentralagencycalled‘Zentralst
30、ellezurVergabevonStudienplätzen’(ZVS)duringtheobservationperiod.ranking,theexcellenceinitiativeandthecentraladmissionprocedure(Section2).Subsequently,Section3describestheapplicationdataincludingfirstdescriptiveevide
31、nce,Section4explainstheestimationstrategy,andSection5presentstheresults.Section6concludes.2.InstitutionalbackgroundTheGermanhighereducationsectorusedtobequitehomogeneouswithrespecttothequalityofuniversities.Theshareofpri
32、vateinstitutionsistraditionallyverylow.Thepublicuniversitiesareadministeredandfinancedbythe16Germanfederalstates.UnlikeintheAnglo-Saxonsystem,nospecificuniversitieswereconsideredaseliteinstitutions,andnotuitionfeesexiste
33、duntil2006.Ingen-eral,onlyaregistrationfeeofabout100Euroshadbeenleviedeachtermbytheuniversities.However,competitionbetweenuniversitieshasbeenencouragedlately.Besidestheintroductionoftuitionfeesandchangesinthedegreesystem
34、duetotheEuropeanhomogenization,universityrankingsbecamepubliclyavailableandpresumablyalsomoreimportanttoprospectivestudentsduetoencouragedcompetition.Germanuniversityrankingshavebeenpublishedinthemediasincethe1990s.Forth
35、efirsttime,universi-tiesandprospectivestudentscouldcomparethequalityregardingvariousqualitydimensionsbetweeninstitutions.TheuniversityrankingoftheCenterforHigherEducationDevelopment(CHEranking)isusedfortheanalysisinthisp
36、aper.Itwasfirstpublishedin1998andis–similartotheU.S.News&WorldReportrankingsfortheU.S.–themostcomprehensiveandmostdetailedrankingofGermanhighereducationinstitutions.Thefirstrankingofmedicalschoolshasbeenpublishedin20
37、03intheweeklymag-azine“Stern”,andthesecondrankingof2006hasbeenissuedwiththeweeklynewspaper“DieZeit”.Bothnewspa-persarewellknownandwidelyrecognizedoutletswithinGermany.5Unlikethewell-knownrankings,suchastheU.S.News&Wo
38、rldReportrankingintheU.S.ortheworld-wide“TheTimesHigherEducationSupplement”andthe“Shanghai-RankingofWorldUniversities”,theGermanCHErankingprovidesinformationonthesubjectlevel.Hence,univer-sitydepartmentsratherthanunivers
39、itiesasawholearecompared,whichallowsamuchmoredetailedassessment.AnotherdifferenceisthattheCHErankingdoesnotpublishleaguetables.Thedepartmentsareinsteadmerelysortedintoatop,middleandbottomqualitygroup.Mostimpor-tantlyform
40、y analysis,theCHErankingassessesvariousqualitydimensionsandpublishestheresultsinalldimen-sionsseparatelywithoutaggregatingthemintoanoverallrank.Thisprocedureavoidsthecontroversialassignmentof5 InthesurveybyHachmeister(2
41、007)onuniversitychoiceandrank-ingusage,71%ofprospectivesecondaryschoolgraduatesindicatedthattheyknowtheCHEranking.Comparedtoothernationalandinternationalrankings,thisisbyfarthehighestvalue.OtherGermanrankings–whicharenot
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