Search

This brief discusses cases of neo-nationalist violations of academic freedom in Hungary and Poland. The most prominent case of neo-nationalist violation of academic freedom in Hungary is the fate of the Central European University (CEU). The circumstances of CEU's forced move out of Hungary came before the European Court of Justice regarding it a possible violation of EU law. The Court cited the General Agreement on Trade in Services (GATS) under one of the three pillars of the World Trade Organisation (WTO) 1994 agreement, free trade, and the determination that CEU was a form of international educational services that should not be denied to the people of Hungary. Poland has a similar hostile environment to academics and academic freedom, although with a glimmer of hope following recent elections. The brief also discusses how such open breaches of academic freedom as in Hungary or Poland, in which politicians directly try to exert influence on research institutions and professors, are fortunately rather rare in Germany. However, a confluence of factors perhaps obscures the differences between "academic freedom" and the "freedom of opinion." In Germany, academic freedom includes the search for topics, rigorous methodical investigation, and professional norms to express findings and competent opinions, whereas the free speech is outside of these professional norms. The brief concludes with a discussion of the role of universities and the future of democracy in the context of ensuring a space for free and open debate.

The academic professoriate is a determinant of successful higher education systems. Yet, recently, worsening conditions of employment, deteriorating salaries, and threats to job security have made the academic profession less attractive, especially to young scholars, in several countries. This paper investigates the salaries as well as the recruitment and retention procedures in public higher education institutions from a cross country perspective. The UK, Germany, France, and Italy are adopted as case studies to determine the attractiveness of European higher education systems. The evolution over the last decade creates an extremely variegated picture.

Transnational joint education provision -- education jointly developed and delivered by two or more institutions in different countries -- has emerged as a desired experience for many students, a key priority of several institutions, and a site of innovation. The strategic importance of this topic on a European level is one of the reasons it was selected for the 2023 EUA Learning & Teaching Thematic Peer Group entitled "Challenges and enablers in designing transnational joint education provision". The group's findings are compiled in this report, which outlines the group's conceptual understanding of the term, benefits and challenges of engaging in transnational joint education provision, and recommendations geared towards higher education leadership, staff members, as well as national and regional-level governments.

European higher education institutions (HEIs) are facing increasing demands for more flexible learning and flexibility in learning paths. This report from a 2023 European University Association Learning & Teaching Thematic Peer Group on "Flexible learning and teaching" explores the complexity of implementing flexible learning at HEIs, starting by defining what it means and entails for the institution, and its members and entities (staff, students, leadership, faculties). With the view that the development of flexible learning is an essential condition for the future of learning at universities, the group identified challenges and examples of practice, and offered recommendations for institutions to reflect on their strategy and build capacity for flexible learning.

This study compares the way IVET and CVET sub-systems interact to support the learning of adults, and thus facilitate lifelong and life-wide learning. By comparing the interaction between IVET and CVET sub-systems in the countries covered, the study analyses the extent to which IVET systems are opening up to adults, and questions whether national and regional policies and practices support or prevent a closer link between CVET and IVET. The study builds on concrete national case-studies, allowing for an in-depth, qualitative comparison and analysis of practices and policies. This allows for a better understanding of obstacles and opportunities in this complex area, directly supporting the stakeholders and policy-makers responsible for taking lifelong and life-wide learning in Europe forward. [The research was carried out by a consortium led by 3s Unternehmungsberatung GmbH (Austria). The consortium includes Ockham IPS (the Netherlands) and the Fondazione Giacomo Brodolino (Italy). The German Federal Institute of Vocational Education and Training (BIBB) supported the project as sub-contractor. For "The Future of Vocational Education and Training in Europe. Volume 3. The Influence of Assessments on Vocational Learning. Cedefop Research Paper. No. 90," see ED626202.]

This synthesis report is based on a survey carried out during 2022 with Cedefop's reporting network ReferNet. It makes an important contribution to understanding the magnitude of early leaving from VET (ELVET) in those European countries where relevant data are available, and the mechanisms and support measures countries employ to measure and monitor the phenomenon at national and regional levels. The report puts special focus on the main factors leading to early leaving from initial VET as reported by EU Member States, Norway and Iceland. It details the support measures teachers, trainers, school principals and companies providing work-based learning received to overcome the challenges society faced due to the COVID-19 pandemic and the war in Ukraine. This research is part of Cedefop's pioneering work within the VET for youth team to support policy-makers and VET practitioners tackling early leaving from VET in Europe. For more than a decade, Cedefop has led research, promoted peer learning through its policy learning fora, and developed and managed online toolkits to benefit learners at risk of dropping out, early leavers from VET and young NEETs. The VET toolkit for tackling early leaving and the VET toolkit for empowering NEETs offer a platform of intervention approaches, good practices and interactive tools designed for both policy-makers and VET teachers and trainers. The community of ambassadors tackling early leaving from VET, created and coordinated by Cedefop since 2017, plays a vital role in enriching and disseminating the toolkit resources. The findings of this survey feed into Cedefop's project on Tackling early leaving from VET. It aims to support EU Member States and the European Commission in the implementation of the Council recommendation on pathways to school success (Council of the European Union, 2022) and the achievement of Education and training 2030 strategic target to lower the rates of early leaving from education and training (Council of the European Union, 2021).

We study whether female students benefit from being taught by female professors, and whether such gender match effects differ by class size. We use administrative records of a German public university, covering all programs and courses between 2006 and 2018. We find that gender match effects on student performance are sizable in smaller classes, but do not exist in larger classes. This difference suggests that direct and frequent interactions between students and professors are important for the emergence of gender match effects. Instead, the mere fact that one's professor is female is not sufficient to increase performance of female students.

We examine the role of universities in knowledge production and industrial change using historical evidence. Political shocks led to a profound pro-science shift in German universities around 1800. To study the consequences, we construct novel microdata. We find that invention and manufacturing developed similarly in cities closer to and farther from universities in the 1700s and shifted towards universities and accelerated in the early 1800s. The shift in manufacturing was strongest in new and high knowledge industries. After 1800, the adoption of mechanized technology and the number and share of firms winning international awards for innovation were higher near universities. [This paper was produced as part of the Centre's Growth Programme.]

This paper provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show how patterns of educational inequality vary across countries, time, and generations, and establish a link between educational inequality and social mobility. We interpret this evidence from the perspective of economic models of skill acquisition and investment in human capital. The models account for different channels underlying unequal education and highlight how endogenous responses in parents' and children's educational investments generate a close link between economic inequality and educational inequality. Given concerns over the extended school closures during the COVID-19 pandemic, we also summarize early evidence on the impact of the pandemic on children's education and on possible long-run repercussions for educational inequality.

Intersectionality highlights that different aspects of individuals' identities are not independent of each other. Instead, they interact to create unique identities and experiences, which cannot be understood by analysing each identity dimension separately or in isolation from their social and historical contexts. Intersectional approaches in this way question the common classification of individuals into groups (male vs. female, immigrant vs. native etc.), which raises important implications for the policy-making process. In education, analyses with an intersectional lens have the potential to lead to better tailored and more effective policies and interventions related to participation, learning outcomes, students' attitudes towards the future, identification of needs, and socio-emotional well-being. Consequently, as elaborated in this paper, some countries have adjusted their policies in the areas of governance, resourcing, developing capacity, promoting school-level interventions and monitoring, to account for intersectionality. Gaps and challenges related to intersectional approaches are also highlighted.

Calls for increased monitoring and evaluation of education policies and practices have not, so far, included widespread and consistent assessments of the inclusiveness of education settings. Measuring inclusion in education has proven to be a challenging exercise, due not only to the complexity and different uses of the concept, but also to its holistic nature. Indeed, measuring inclusion implies analysing a variety of policy areas within education systems, while also considering the different roles of the system, the school and the classroom. This paper discusses the application of the input-process-outcome model to the measurement of inclusion in education, and key indicators that can be adopted by education systems and schools to this end. It makes considerations relevant to policy makers when designing indicators to measure inclusion, such as the extent of their application, the constraints related to data disaggregation and the relevance of intersectional approaches to inclusion.

Following a landmark court ruling in 2005, more than half of Germany's universities started charging tuition fees, which were subsequently abolished until 2015. We exploit the unusual lack of grandfathering in these policies to show that fees increase study effort and degree completion among incumbent students. However, fees also decrease first-time university enrollment among high school graduates. Combining this enrollment impact with the effect on completion, we find that fees around the zero-price margin have only little effect on overall educational attainment. We conclude by discussing policies targeting the separate effect margins of fees and caution against a general abolition. [Funding for this report was provided by the Deutsche Forschungsgemeinschaft (DFG, German Research Foundation).]

Principals (policy makers) have debated the progress in U.S. student performance for a half century or more. Informing these conversations, survey agents have administered seven million psychometrically linked tests in math and reading in 160 waves to national probability samples of selected cohorts born between 1954 and 2007. This study is the first to assess consistency of results by agency. We find results vary by agent, but consistent with Flynn effects, gains are larger in math than reading, except for the most recent period. Non-whites progress at a faster pace. Socio-economically disadvantaged white, black, and Hispanic students make greater progress when tested in elementary school, but that advantage attenuates and reverses itself as students age. We discuss potential moderators.

This report summarises the findings of the 2022 EUA Thematic Peer Group which explored collaborative teaching practice (CTP) in higher education in detail. Based on a shared understanding of the theme agreed on by the group members, it outlines the key opportunities and potential challenges higher education institutions face in embedding CTP and provides examples of practice from the group members. Given the many inter-institutional, national and international collaborations developed during the pandemic, the group regarded the use of digital technologies as a key feature of collaborative teaching, and it therefore became a key focus of their discussions. The report identifies the various ways in which the group's members collaborate as part of their learning and teaching activities, highlights the key challenges that higher education institutions face in implementing collaborative teaching and suggests a set of recommendations for individuals, institutions and national and European-level bodies to overcome those challenges identified. The group was organised in the context of the "Supporting European universities in their strategic approaches to digital learning" (DIGI-HE) project and EUA's Learning & Teaching activities.

I study the effects of early between-school ability tracking on student achievement, exploiting institutional differences between German federal states. In all states, about 40% of students transition to separate academic-track schools after comprehensive primary school. Depending on the state, the remaining student body is either directly tracked between two additional school types or taught comprehensively for another two years. Comparing these students before and after tracking in a triple-differences framework, I find evidence for positive effects of prolonged comprehensive schooling on mathematics and reading scores. These are almost entirely driven by low-achievers. Early and rigid forms of tracking can thus impair both equity and efficiency of school systems. [This paper was produced as part of the Centre's Education and Skills Programme.]

What makes diversity unifying in some settings but divisive in others? We examine how the mixing of ethnic groups in German schools affects intergroup cooperation and trust. We leverage the quasi-random assignment of students to classrooms within schools to obtain variation in the type of diversity that prevails in a peer group. We combine this with a large-scale, incentivized lab-in-field-experiment based on the investment game, allowing us to assess the in-group bias of native German students in their interactions with fellow natives (in-group) versus immigrants (out-group). We find in-group bias peaks in culturally polarized classrooms, where the native and immigrant groups are both large, but have different religious or language backgrounds. In contrast, in classrooms characterized by non-cultural polarization, fractionalization, or a native supermajority, there are significantly lower levels of own-group favoritism. In terms of mechanisms, we find empirical evidence that culturally polarized classrooms foster negative stereotypes about immigrants' trustworthiness and amplify taste-based discrimination, both of which are costly and lead to lower payouts. In contrast, accurate statistical discrimination is ruled out by design in our experiment. These findings suggest that extra efforts are needed to counteract low levels of inclusivity and trust in culturally polarized environments. [Funding for this report was provided by ifo Institute, University of Munich, University of St. Gallen, and University of Hamburg.]

Education is one of the most important fields to promote the integration of refugee and newcomer children and youths in host countries. However, holistic education for refugee and newcomers has so far not been established into mainstream education systems in European countries. Projects and pilot programmes have developed across Europe to test holistic approaches. Some of them have started very recently as a response to the arrival of high numbers of refugees and newcomers, while others have been established for a longer period and have started to expand. This paper first provides an overview of key research gaps in refugee education. It then provides a mapping of promising holistic education practices in Europe, with a focus on Germany, Greece and the Netherlands. Based on this, the paper explores key conditions to upscale and institutionalise promising practices of holistic refugee and newcomer education.

With a view to identifying inclusive policies and good practices to respond to the many challenges that refugee students face to access higher education in their host country, this Policy Paper has conducted a review of available statistical data and literature. In addition, six selected countries with considerable refugee populations have been analysed more in-depth. They are: France, Ethiopia, Egypt, Germany, Norway, and Turkey. From this analysis, the paper presents inclusive policies and good practices from these countries and their higher education institutions by type of obstacle to accessing higher education. It concludes by presenting 15 recommendations on how host countries can support the access of refugees to their national systems, arguing strongly for an 'equality opportunity approach' in terms of national policies, and caring measures, at the level of higher education institutions. [This report was co-produced by the United Nations High Commissioner for Refugees (UNHCR), the UN Refugee Agency. It was made possible in part through funding from the Swedish International Development Agency (SIDA).]

This research paper is the fifth in a series produced as part of the Cedefop project The changing nature and role of VET (2016-18). Based on comparative analysis of labour force survey data from 2014, the report analyses the vocational effect on labour market and education outcomes, asking whether any advantages conferred by vocational qualifications in early career would be offset by disadvantages later in life. The report explores the functioning of the safety net and the diversion effects across countries, demonstrating how these vary considerably with the specific institutional structure of schooling and work-based training. The results indicate that VET graduates are potentially sacrificing the longer-term gains associated with further education in favour of short-term benefits. [This research was carried out by a consortium led by 3s Unternehmensberatung GmbH and including the Danish Technological Institute, the Institute of Employment Research (University of Warwick), the Institute of International and Social Studies (Tallinn University) and Fondazione Giacomo Brodolini. The Federal Institute for Vocational Education and Training (BIBB) in Germany is supporting the project as a subcontractor.]

The aim of the OECD Career Readiness project is to identify patterns of teenage attitudes and activities that are associated with better transitions into employment by analysing multiple national longitudinal datasets. This paper looks for further evidence of the link between teenage activities, experiences and career-related thinking and adult career outcomes by analysing 10 new datasets from eight countries. Overall, the results of this paper find further evidence that secondary school students who explore, experience and think about their futures in work frequently encounter lower levels of unemployment, receive higher wages and are happier in their careers as adults. The findings of this paper are analysed together with the evidence from the two previous working papers of the Career Readiness project, concluding that there is international evidence to support 11 out of the 14 potential indicators that were explored as indicators of career readiness.

In a highly competitive global landscape, occupations are transformed, new jobs are created and the skills needed for the labour market are constantly changing. European countries are looking at redefining VET [vocational education and training] to respond promptly to such challenges and take advantage of the opportunities ahead. They are reforming to modernise their VET systems and strengthen the relevance of their national qualifications in an international context. This publication explores national responses to globalisation in 15 countries and five economic sectors. It aims to understand how European and international initiatives help VET renewal across Europe. It shows how countries' reactions are embedded in their national traditions but also depend on their interactions with European, sectoral and multinational players that provide training and award qualifications. [The research was carried out by a consortium led by IBE Educational research institute and 3s Unternehmensberatung GmbH.]

This paper quantifies the learning gain that accrues to 15-year-old students over one year of schooling in 18 countries and economies, where the cohort eligible to sit the OECD Programme for International Student Assessment (PISA)ISA test overlaps with two distinct school cohorts. School-entry regulations are used as an exogenous source of variation for grade levels in an instrumental- variables framework. The focus on the joint effect of schooling and age, together with (local) linearity assumptions, make it possible to account for differences in school-starting age across students who are expected to be in different grades. On average, students' test scores increase by about one-fifth of a standard deviation over a school year. While estimates of the grade gain for individual countries and economies come with wide confidence intervals, this study also shows the annual learning gain of students around the age of 15 tends to be larger in high-income countries compared to middle-income countries.

We study whether raising instructional time can crowd out student pro-social behaviour. To this end, we exploit a large educational reform in Germany that has raised weekly instructional hours for high school students by 12.5% as a quasi-natural experiment. Using a difference-in-differences design, we find that this rise has a negative and sizeable effect on volunteering, both at the intensive and at the extensive margin. It also affects political interest. There is no similar crowding out of scholastic involvement, but no substitution either. Impacts seem to be driven by a reduction in available leisure time as opposed to a rise in intensity of instruction, and to be temporary only. Robustness checks, including placebo tests and triple differencing, confirm our results. [This paper was produced as part of the Centre for Economic Performance's Wellbeing Programme. The project was funded by the German Ministry for Education and Science.]

Governments recognise that careers guidance, underpinned by accurate labour market information, can help learners make post-secondary education choices that match their interests, aptitudes and abilities, and lead to rewarding employment. For this reason, they have invested in building linked education/employment information systems and other information resources which are displayed on websites targeted to learners and their families. However, researchers and governments agree that these efforts are often ineffective in informing learners' decisions -- access to information is not sufficient to provide effective support to student choice. Drawing upon the insights of behavioural economics, this paper examines how learners access and use information, and what this implies for the design of public study and career choice websites that aim to effectively support student choice. The report also takes stock of the career guidance websites in use in the majority of OECD countries, and sets out to provide actionable advice for policy makers to guide the design of effective information policy levers that support student choice.

This study investigated how firms in Germany and Australia compare when dealing with the institutional arrangements for apprenticeship training in their countries, with particular attention given to factors which may impact on their training motivation. Apprenticeships are a well-established pathway to employment across many countries, with a particularly long and enduring history in Germany and Australia. Apprenticeships are characterised by a tripartite relationship between employer, apprentice, and training organisation. The available international literature suggests that the institutional framework for training in a country is an important determinant of a firm's motivation to provide training, and it influences their willingness to bear (at least part) of the training costs. Key messages from this study are: (1) Employers of trades' apprentices in both Germany and Australia appear to bear substantial costs for training their apprentices; (2) Institutional frameworks in Germany foster an investment model, a model which emphasises the benefits of employing apprentices after training, while in Australia some firms adopt more of a production (that is, substitution for "regular" workers) model of apprenticeship training, although there is a relatively strong investment motivation for trade firms in Australia; (3) For firms focused on the short-term costs and benefits of training, the withdrawal of some national government incentive payments in Australia has led to a weaker commitment to training, most evident in non-trade trainee places being offered; and (4) By contrast, firms training in trade occupations appear to be more investment-oriented and are more inclined to continue training, or employ an apprentice after training, even with the withdrawal of incentives. Tables and figures are appended.

The worldwide school closures in early 2020 led to losses in learning that will not easily be made up for even if schools quickly return to their prior performance levels. These losses will have lasting economic impacts both on the affected students and on each nation unless they are effectively remediated. While the precise learning losses are not yet known, existing research suggests that the students in grades 1-12 affected by the closures might expect some 3 percent lower income over their entire lifetimes. For nations, the lower long-term growth related to such losses might yield an average of 1.5 percent lower annual GDP for the remainder of the century. These economic losses would grow if schools are unable to re-start quickly. The economic losses will be more deeply felt by disadvantaged students. All indications are that students whose families are less able to support out-of-school learning will face larger learning losses than their more advantaged peers, which in turn will translate into deeper losses of lifetime earnings. The present value of the economic losses to nations reach huge proportions. Just returning schools to where they were in 2019 will not avoid such losses. Only making them better can. While a variety of approaches might be attempted, existing research indicates that close attention to the modified re-opening of schools offers strategies that could ameliorate the losses. Specifically, with the expected increase in video-based instruction, matching the skills of the teaching force to the new range of tasks and activities could quickly move schools to heightened performance. Additionally, because the prior disruptions are likely to increase the variations in learning levels within individual classrooms, pivoting to more individualised instruction could leave all students better off as schools resume. As schools move to re-establish their programmes even as the pandemic continues, it is natural to focus considerable attention on the mechanics and logistics of safe re-opening. But the long-term economic impacts also require serious attention, because the losses already suffered demand more than the best of currently considered re-opening approaches.

In July 2010, the Massachusetts Board of Elementary and Secondary Education (BESE) voted to adopt Common Core's standards in English language arts (ELA) and mathematics in place of the state's own standards in these two subjects. The vote was based largely on recommendations by Commissioner of Education Mitchell Chester and then Secretary of Education Paul Reville, and on the conclusions in three studies comparing the state's standards with Common Core's, all financed directly or indirectly by the Bill & Melinda Gates Foundation, and all issued by organizations that are among the primary boosters of Common Core (Achieve, Inc., Thomas B. Fordham Institute, and Massachusetts Business Alliance for Education). Nevertheless, annual state testing for school and district accountability continued as part of the Massachusetts Comprehensive Assessment System (MCAS) mandated by the 1993 Massachusetts Education Reform Act (MERA). To accommodate the adoption of Common Core's standards, tests were based on both the old standards and an annually increasing number of Common Core's standards until 2015, when all of the pre-Common Core standards in ELA and mathematics were archived, and the MCAS tests were presumably only Common Core-based. After the vote to adopt Common Core's standards in 2010, the state joined the testing consortium called Partnership for Assessment of Readiness for College and Careers (PARCC), funded by the United States Department of Education (USED) to develop common tests for its member states (about 25 initially), but with the costs for administering the tests to be borne by the states and local school districts. Since 2011, PARCC has been developing tests that BESE is expected to vote to adopt in the late fall of 2015 as the state's official Common Core-based tests in place of Common Corebased MCAS tests. (Indeed, the commissioner of education and his staff at the Department of Elementary and Secondary Education (DESE) have been implementing a transition to PARCC tests for several years.) BESE's official vote will be guided, again, by the recommendations of the same commissioner of education (who now also chairs PARCC's Governing Board), the current Secretary of Education James Peyser, and the conclusions reached in "external" studies comparing PARCC and MCAS tests as well as in about 20 studies directly authorized by PARCC. Two of the external studies are listed in the state's 2015 application to the USED for a waiver from No Child Left Behind Act requirements and are by organizations that had originally recommended adoption of Common Core. One, issued by the Massachusetts Business Alliance for Education in February 2015, claims that PARCC tests predict college readiness better than MCAS tests did. A second, to be completed by the Fordham Institute and a partner, is to be issued in time for BESE's vote. A third, issued in mid-October 2015 by Mathematica Policy Research (and requested by the state's Executive Office of Education) claims both tests are equally predictive of college readiness, although its report has major shortcomings. This White Paper will be a fourth external report on the question BESE's vote will address; it is motivated by our interest in providing an analysis of how MCAS and PARCC assess reading and writing. Much less national attention has been paid to Common Core-based assessments of reading and writing than of mathematics, yet reading and writing skills are just as important to readiness for college and career as is mathematics. This White Paper's central recommendation is that Massachusetts use a testing system for K-12 that is much less costly, more rigorous academically, and much more informative about individual student performance, and with much less instructional time spent on test preparation and administration, than the current PARCC tests. Both the PARCC tests and the current MCAS tests in grade 10 are weak, albeit for different reasons, and neither indicates eligibility for a high school diploma, college readiness, or career readiness. In essence, the authors recommend that BESE reject the PARCC assessment system and vote for the MCAS system but on the condition that the responsibility for developing and administering K-12 standards and tests be assigned to an organization in Massachusetts independent of DESE and the state's education schools. This organization must focus squarely on providing the best possible content standards from disciplinary experts in the arts, sciences, and engineering throughout the state and be capable of providing oversight of high school standards and tests. If carried out, these recommendations would ensure the legacy and future promise of MERA. The following are appended: (1) Critique of Criteria for Evaluating Common Core-Aligned Assessments, (2) Links to Public Hearings and Other Sources of Public Comment on MCAS or PARCC, and (3) A Randomly-Chosen Test Item Used on the 2014 Grade 10 MCAS Math Test. Also provided are additional recommendations, an about the authors section, and endnotes.

This paper investigates how legal cannabis access affects student performance. Identification comes from an exceptional policy introduced in the city of Maastricht which discriminated legal access based on individuals' nationality. We apply a difference-in-difference approach using administrative panel data on over 54,000 course grades of local students enrolled at Maastricht University before and during the partial cannabis prohibition. We find that the academic performance of students who are no longer legally permitted to buy cannabis increases substantially. Grade improvements are driven by younger students, and the effects are stronger for women and low performers. In line with how THC consumption affects cognitive functioning, we find that performance gains are larger for courses that require more numerical/mathematical skills. We investigate the underlying channels using students' course evaluations and present suggestive evidence that performance gains are driven by improved understanding of material rather than changes in students' study effort. [This paper was produced as part of the Centre's Education Programme. The Centre for Economic Performance is financed by the Economic and Social Research Council.]

Over the past two decades, public higher education has become widely recognized for its contribution to socio-economic adjustment. This paper probes its evolution in two large and affluent democracies, the United States and Germany, whose higher education systems represent distinct ideal types. The analysis argues that public authorities in both countries have liberalized their systems to spur innovation in the provision of higher education. Yet a broad convergence in associated market expansion has coincided with divergence in its modes and consequences. Tracing how the two countries' policy regimes have created path-dependent trajectories of reform, the paper contends that the institutions associated with each state's inherited role in higher education--"enabling" in the US and "constitutive" in Germany--have empowered different social groups to shape state action. Under the influence of investors and managers, institutional drift and conversion have pushed public higher education toward corporatization in the United States. In contrast, interventions by faculty and students have moderated the effects of institutional displacement and layering on the German system's stratification. Given the sector's growing importance, this analysis carries important implications for the comparative study of capitalist evolution. [A bibliography is included.]