|
« AAUP Homepage
|
The Gap to Rise Between Rich And Poor Institutions
The economic structure of higher education promises to become more unequal over time, according to the authors of a report on institutions' savings habits. In Savings, Wealth, Performance, and Revenues in U.S. Colleges and Universities, researchers Gordon Winston, Jared Carbone, and Laurie Hurshman examine data on savings rates and extrapolate into the future. Because the ability to save depends heavily on present wealth, for the most part, the rich will get richer, the report predicts.
The ramifications of financial inequities are particularly sweeping in higher education, because its "product," education, almost always costs more than institutions charge for it. Colleges rely on their accumulated wealth to make up the difference between what they charge for tuition and the actual cost of educating students. The scale on which they are able to do so varies greatly according to their wealth. The report estimates that institutions currently offer their students subsidies ranging from about $2,000 to $25,000 a year. The "subsidy hierarchy" translates into a quality hierarchy, as the richest schools are able to attract the best students and engage and retain the best faculty.
The report is part of the Williams Project, an ongoing research project on higher education economics that is centered at Williams College.
|