The effects of accountability on higher education

This paper analyzes the effects of a higher education accountability system in Brazil. For each discipline, colleges were assigned a grade that depended on the scores of their students on the ENC, an annual mandatory exam. These grades were then disclosed to the public and colleges were rewarded or penalized based on them. I find that the ENC had a positive effect on the education and the proportion of full-time faculty and that it increased the number of vacancies offered, applicants and enrollments. Colleges were affected differently depending on grades, ownership and academic organization, changing the distribution of students among them.