Identifying variation in learner outcomes by further education provider

This exploratory research looks at variations in learners' employment and earnings across further education (FE) providers. The key aim is to identify: (a) the extent to which variation in average labour market outcomes across FE providers is observed; (2) the extent to which this analysis delivers robust indicators that could be used to investigate 'quality' or 'efficacy' across FE providers; and (3) what might be considered as next steps in the research. The majority of the report describes results from an econometric analysis that estimates value added, based on comparisons of achievers and non-achievers/drop-outs 'within' each provider. The assumption is that labour market outcomes from the non-achieving/drop-out group within each provider provide estimates of the counterfactual for 'the sort of achievers observed within a specific provider'.

The authors stress that the current analysis not be used to identify specific under-, or over-performing providers. However, when considering raw differences in labour market outcomes, significant variation can be seen across providers. Having estimated labour market value-added, and controlling for additional provider level characteristics, there remains considerable unexplained variation in returns. This warrants further investigation.

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