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Res High Educ (2015) 56:146165
DOI 10.1007/s11162-014-9360-9
Gary R. Pike Steven S. Graunke
Received: 17 June 2014 / Published online: 13 December 2014 Springer Science+Business Media New York 2014
Abstract Despite being criticized as unrepresentative and misleading, retention and graduation rates are an important part of college-search web sites and accountability systems, and they frequently have been used as indicators of institutional quality and effectiveness in educational research. Retention and graduation rates are often compared over time and across institutions. However, such comparisons can be confounded by differences in entering student cohorts and differences among the institutions being compared. This research examined the effects of institutional and cohort characteristics on one-year retention rates using random-effect and xed-effect regression models for panel data. The use of a xed-effect model allowed the researchers to account for omitted variables (unobserved heterogeneity) in the analyses. Results indicated that unobserved heterogeneity was a signicant issue in the study, and that traditional regression methods may overstate the effects of institutional characteristics on retention rates. Results also indicated that the effects of institutional and cohort characteristics were essentially stable over time and across cohorts.
Keywords Retention rates Panel data Unobserved heterogeneity Fixed-effect
regression models
Paper presented at the annual meeting of the Association for Institutional Research, Orlando, FL, May 2014.
G. R. Pike (&)
Higher Education and Student Affairs, IU School of Education, Indiana University-Purdue University-Indianapolis, 902 W. New York Street, ES 3125, Indianapolis, IN 46202, USAe-mail: [email protected]
S. S. Graunke
Ofce of Student Data, Analysis and Evaluation, Indiana University-Purdue University-Indianapolis, 815 W. Michigan Street, UC 3147, Indianapolis, IN 46202, USAe-mail: [email protected]
Examining the Effects of Institutional and Cohort Characteristics on Retention Rates
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The Effects of Institutional and Cohort Characteristics on Institutional Retention Rates
Despite being criticized as unrepresentative and misleading (Adelman 2007; Astin 1993; National Center for Public Policy and Higher Education 2002), institutional retention and graduation rates are an important component in U. S. News rankings and are a prominent feature on college-search websites sponsored by the Federal government and private organizations (Education Trust 2009; National Center for Education Statistics 2014; U.S. News and World Report 2012). Retention and graduation rates also play an important role in accountability initiatives. Postsecondary institutions are required...