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The Importance of Common Metrics for Advancing Social Science Theory and Research: A Workshop Summary
  http://www.nap.edu/catalog/13034.html

            INDICATORS                                                    41

                             Number of Successes (or Failures)
                           __________________________________
                           Number at Risk of Success (or Failure)

               While it is easier to quantify success or failure in the numerator, Warren
            identified a number of scenarios that complicate measuring the denomina-
            tor. For example, how should the denominator of a measure account for
            migration into or out of a particular geographic area? How should students
            who are expelled or otherwise pushed out of high school be counted in the
            denominator? When students transfer from one school to another, should
            they be counted in the first school’s denominator, the second school’s de-
            nominator, neither, or both?
               In his overview of status rates, Warren explained that the fraction of the
            population that falls into a population subcategory is measured at a given
            point in time. For the purpose of describing amounts of human capital in
            a  population  or  a  geographic  area,  he  addressed  how  status  completion
            or dropout rates are imperfect. For example, in the previous presentation,
            Pollak described a method to treat all high school credentials as essentially
            equivalent;  however,  this  is  not  necessarily  the  best  approach,  because
            economists have long questioned the relative labor market value of GEDs,
            and little is known about alternative credentials.
               To measure a school’s holding power, dropout and completion rates
            need to directly and accurately reflect a specific location. This involves the
            use of cohort rates, which measure the fraction of individuals who transi-
            tion into a particular status among those who share a common status at
            the outset. Cohort rates are based on longitudinal administrative data that
            school districts and states keep about students. School districts are increas-
            ingly  using  longitudinal  tracking  systems  to  follow  students  over  time;
            however, there are still problems with the way states and districts define
            numerators and denominators in order to lower their dropout rates. Warren
            argued  that  the  most  effective  data  would  represent  each  graduating  or
            incoming student cohort and be made available annually.
               He discussed how few trend analyses have been completed, because
            measures  change  over  time  and  cross-state  or  cross-district  comparisons
            have been difficult to carry out. In this regard, the movement toward using
            standards that were initially proposed in 2008 by the National Governors
            Association and the U.S. Department of Education is a step forward. These
            standards include restricting the numerator to regular diploma recipients
            who  obtain  diplomas  within  four  years  and  the  denominator  to  people
            who are at risk of getting those diplomas and appropriately accounting for
            things like migration. If states consistently implement the standards laid out
            by the Department of Education, eventually cohort rates can be compared
            over time and across states.








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