| dc.description.abstract | In this paper, the relationship between governmental funding and student performance within
the Dutch educational system is analyzed. The differences in the funding systems and the
effects of funding on student achievement between the secondary level of education and the
tertiary level of education is determined. Through this approach, the effectiveness of a funding
system based on performance variables can be contemplated. The measurements are done by
regressing performance variables, such as grades and graduation rates, on government
funding variables. Results show that within the 2nd level of education, funding has a jointly
significant positive effect on average grades and on average graduation rates. This means that
additional government funding, increases student performance. In particular, funding from
one year prior has a positive impact on performance, showing that Dutch secondary schools
are not only using their funds for current costs, but also for investing. Within tertiary
education, a similar, but weaker effect is found. These findings are in line with previous
literature where in general a positive relationship has been established between funding and
performance. The literature also shows that educational institutions where a performance
funding system is in place, this relationship is far weaker or does not exist at all. Also
recognizing the potential side effects of such a system, the Dutch government has been
criticized by external researchers for making higher educational institution’s funding too
dependent on performance variables. This thesis supports these claims and forms a base for
further research on the topic. | |
