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Incentives to Increase Graduates
The California legislature has decided to implement a performance funding system for the state's community colleges. The state is interested in increasing the number of graduates from disadvantaged socioeconomic backgrounds. At the same time, the state also wants to reward institutions that graduate more students from high-demand fields such as nursing, engineering technology, biotechnology, and computer technology. The performance funding system will be simple:
Evaluate the system proposed and express your position on whether it will increase the number of graduates as intended, being sure to support your position with appropriate references. What other impact(s) might this system have?
What challenges or unanticipated consequences do you see with the above system?
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incentive effect on labour provision
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