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Examining the Effects of Institutional and Cohort Characteristics on Retention Rates

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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 fixed-effect regression models for panel data. The use of a fixed-effect model allowed the researchers to account for omitted variables (unobserved heterogeneity) in the analyses. Results indicated that unobserved heterogeneity was a significant 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.

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Notes

  1. Race/ethnicity was reported using seven categories prior to 2007 (Black, Non-Hispanic, Hispanic, Asian or Pacific Islander, American Indiana or Alaska Native, White, Non-Hispanic, nonresident Alien, and Unknown/Other), and nine categories after 2010 (Black or African American, Hispanic or Latino, Asian, American Indian or Alaska Native, White, Nonresident Alien, Native Hawaiian or Other Pacific Islander, Unknown/Other Ethnicity, or Multi-racial). Institutions submitting data in 2008 and 2009 were encouraged to use old definitions, but were permitted to use new definitions if a decision had been made at their institution to change reporting practices before new definitions became effective in 2010 (Consortium for Student Retention Data Exchange 2014).

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Acknowledgments

The authors wish to thank the staff members of the Consortium for Student Retention Data Exchange for providing the data used in this study.

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Authors and Affiliations

  1. Higher Education and Student Affairs, IU School of Education, Indiana University-Purdue University-Indianapolis, 902 W. New York Street, ES 3125, Indianapolis, IN, 46202, USA

    Gary R. Pike

  2. Office of Student Data, Analysis and Evaluation, Indiana University-Purdue University-Indianapolis, 815 W. Michigan Street, UC 3147, Indianapolis, IN, 46202, USA

    Steven S. Graunke

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Correspondence to Gary R. Pike.

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Pike, G.R., Graunke, S.S. Examining the Effects of Institutional and Cohort Characteristics on Retention Rates. Res High Educ 56, 146–165 (2015). https://doi.org/10.1007/s11162-014-9360-9

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