A new facet of cumulative advantage in higher education finance

Abstract

This paper studies the accumulation of financial resources in higher education. Its focus lies on the Quality Pact for Teaching (QPT), a large-scale funding programme that aimed to improve the quality of tertiary education in Germany. Starting in 2011, the QPT allocated almost 2 billion euros over a 10-year period. Yet, unlike prior national funding schemes, the QPT was strongly inspired by New Public Management measures and marked the first time that a substantial amount of teaching grants was awarded in a competitive manner. My estimations show that institutions with a successful history of acquiring third-party funds coped best under these novel circumstances, thus revealing a clear pattern of cumulative advantage. Although typically dedicated to research purposes, the level of previous third-party funding emerges as a strong predictor of QPT success. Therefore, it appears that the QPT unintentionally contributed to steeper financial gaps in Germany’s academic landscape.