Career Advancement and Social Mobility Effects of Laureate Peru Higher Education

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Career Advancement and Social Mobility Effects of Laureate Peru Higher Education Career Advancement and Social Mobility Effects of Laureate Peru Higher Education An Impact Evaluation Final Report This report was prepared by C230 Consultores for: With the technical support and advice of: This document is confidential and may be circulated only with the client’s authorization. December 2016 Table of Contents Acknowledgements ............................................................................................................................................................ 3 0. Executive summary ..................................................................................................................................................... 4 1. Introduction ................................................................................................................................................................ 7 2. Context of the study ................................................................................................................................................... 9 i. Higher education in Peru ........................................................................................................................................ 9 ii. The Laureate education program ......................................................................................................................... 10 iii. Research objectives .............................................................................................................................................. 11 3. Methodology ............................................................................................................................................................ 13 i. Research Questions ............................................................................................................................................... 13 ii. Research design .................................................................................................................................................... 13 A. First approach: Quasi-experimental design ...................................................................................................... 14 B. Second approach: employers’ perceptions about graduates’ performance and market value....................... 21 C. Third approach: qualitative perception of Laureate graduates ....................................................................... 22 4. Findings ..................................................................................................................................................................... 24 5. Conclusions ............................................................................................................................................................... 38 6. References ................................................................................................................................................................ 40 7. Appendices ............................................................................................................................................................... 42 Appendix I ..................................................................................................................................................................... 42 Appendix II .................................................................................................................................................................... 43 Appendix III ................................................................................................................................................................... 44 Appendix IV ................................................................................................................................................................... 47 Appendix V .................................................................................................................................................................... 48 Appendix VI ................................................................................................................................................................... 50 Appendix VII .................................................................................................................................................................. 51 Appendix VIII ................................................................................................................................................................. 54 Appendix IX ................................................................................................................................................................... 55 Appendix X .................................................................................................................................................................... 56 Appendix XI ................................................................................................................................................................... 61 Appendix XII .................................................................................................................................................................. 63 Appendix XIII ................................................................................................................................................................. 65 2 Acknowledgements The core team that developed this evaluation included: Giuliana Montanez (Laureate Peru – UPC), Ricardo Garcia Anton (Laureate Peru – Cibertec); Emal Dusst, Craig Lundsten, Pete Pinheiro, Todd Wegner, and Bruno Costa from Laureate International Universities; and Raul Abreu, Braulio Torres, Francisco Zavala, and Martin Montenegro from C230 Consultores. The team also thanks Marisol Suarez and Clery Luz Neyra Vera from UPC, and Paolo Puelles from Cibertec for their insightful input. IFC provided technical advice and support to Laureate and the consultant. The core IFC team was led by Gloria Paniagua with support from Mohammed Ali Khan, Charles Lor, and Helle Lilly Andersen. The framework benefited from expert advice provided throughout the evaluation by Miguel Angel Rebolledo Dellepiane. The team would also like to acknowledge review comments by Amer Hasan (World Bank), Sven Harten (DEval), and Professor Henry Levine (Columbia University). Useful input for the evaluation was provided by the following IFC colleagues: Toshiya Masuoka, Luke Haggarty, Claudio Volonte, and Deepa Chakrapani. The team wishes to thank all contributors and reviewers for their input and collaborative spirit. 3 0. Executive summary In 2004, Laureate International Universities, an international network of higher education institutions, acQuired two institutions in Peru: the Universidad Peruana de Ciencias Aplicadas (UPC) and Cibertec, a technical/vocational institute. Both UPC and Cibertec offer affordable undergraduate degree programs in a variety of academic disciplines and share common missions to develop competent professionals. Laureate is interested in learning whether the additional access to higher education that UPC and Cibertec provide allows graduates to access good jobs and provides more pathways for social mobility. The objective of this research is to assess the career achievements and social mobility of Laureate graduates in Lima, Peru, after they enter the labor market, compared to their peers from other institutions. This research is based on a Quasi-experimental impact evaluation design, complemented with descriptive statistics and qualitative information. The results of this study were obtained through an ex-post impact evaluation of graduates in Lima. Since no baseline information was collected while these graduates were in school, the study relies on a survey of Laureate alumni and graduates of comparable higher education institutions. These surveys were complemented with a survey of employers and in-depth interviews of Cibertec and UPC alumni. The impact evaluation relied on comparing outcomes from a treatment group (alumni of UPC and Cibertec) with a control group (alumni of universities and technical/vocational institutes that are direct competitors), defined in consultation with the International Finance Corporation (IFC) and Laureate International Universities. Individuals from the treatment and control groups were paired using two matching methodologies (Coarsened Exact Matching and Genetic Matching) based on a number of observable pre-treatment variables or covariates, including parental education, type of high school (public or private), household socioeconomic status, field of study, and age, among other variables. The report presents detailed findings under one (main) econometric model, but, to assess robustness of results, three alternative estimations were conducted. Estimations are considered conclusive and robust only if results are significant and in the same direction in all four econometric models used. If results are not robust, we still treat them as valuable findings, though we consider them as weak results. This study suggests that Laureate’s academic degrees with the highest enrollment rates enhance the performance of graduates in the labor market and provide more pathways for social mobility relative to other affordable education alternatives. In general, Laureate graduates do well; graduates of UPC and Cibertec have higher incomes and greater job benefits than their peers. UPC graduates likewise experience
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