Impact of R1 classification on universities

Justin Callais and Kerianne Lawson

Applied Economics, 2025, vol. 57, issue 32, 4818-4830

Abstract: Universities spend a substantial amount of time vying for various awards, classifications, and rankings. One of the most sought after classifications a university can receive is ‘R1’ status from the Carnegie Classification of Institutions of Higher Education. However, little work has been done on this process and the subsequent impact of receiving R1 status on university outcomes. Using a difference in differences approach and a regression discontinuity design, we assess the impact of receiving R1 status on admissions, incoming student quality, school finances, and faculty outcomes. We find that there are no significant differences in these outcomes between R1 and R2 schools. There are several schools that gain R1 status over the period of our study. We find some evidence that applications increase after schools receive R1 status, suggesting an increase in demand. Similarly, we find increases in tuition revenue, federal grants received, and the number of full-time employees after R1 status is announced.

Date: 2025
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DOI: 10.1080/00036846.2024.2364098

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