The impact of 13 years of performance-based subsidies on the quality of public, state-run universities in Mexico

Abstract

This work analyzes the effects of a Mexican Education Ministry financing policy for Public State Universities (UPES) during the period of 2001 to 2013. The policy, called the Integral Programs of Institutional Improvement (PIFI), provides UPES with competitive, performance-based subsidies administered through the federal government. The results show that, despite some regional differences, this method for allocating public funds has proved effective in promoting institutional progress in terms of quality and academic consolidation, as well as in diminishing the performance gap among institutions.