The Declining Economic Value Of Higher Education And The American Social System

Postsecondary educational institutions in the United States are facing increasing financial stress and waning public support. Unless these trends can be changed, higher education can be expected to stagnate. What, if anything, can be done? As a starting point, advocates of higher education need to more fully recognize the issues associated with the economic mission of higher education and how this mission gets translated into individual student gains, regional growth, and social equity. This requires an understanding of the relationship between the outcomes of higher education and measures of economic productivity and well-being. This volume addresses topics related to the role of postsecondary education in microeconomic development within the United States. At tention is given to the importance of colleges and universities 'in the enhancement of individual students and in the advancement of the com munities and states within which they work. Although several of the chapters in this volume are aimed at research/teaching universities, much of what is presented throughout can be generalized to all of postsecondary education. Little attention, however, is given to the role of higher education in the macroeconomic development of the United States; this topic is covered in our related book, American Higher Education and National Growth.

Drawing upon quantitative data gathered from the U.S. Census and U.S. Department of Education, as well as interviews with students from a variety of socio-economic and ethnic backgrounds, Low-Income Students and the Perpetuation of Inequality examines the question of who really benefits from public higher education. It engages with questions of social capital, opportunity, funding and access to education, presenting a rich discussion of social mobility, the value of college education and the impact of education upon the redistribution of income. A thorough exploration of the real impact of college on American society, this volume will appeal to social scientists with interests in education, social capital, social stratification, class and social mobility.

In The Economics of Higher Education in the United States, editors Thomas Adam and A. Burcu Bayram have assembled five essays, adapted from the fifty-second annual Walter Prescott Webb Memorial Lecture Series, that focus on the increasing cost of college—a topic that causes great anxiety among students, parents, faculty, administrators, legislators, and taxpayers. Essays focus on the funding of colleges, the funding of professional schools, and the provision of scholarships and student loans for undergraduate students to reveal the impact of money on the structure of institutions of higher education and the organization of colleges. The cost of higher education has risen dramatically as both states and the federal government have significantly lowered their contributions to offset that cost. With rising tuition and cost of living—on top of a growing student population—too many graduates find themselves in financial trouble after earning their undergraduate degree. Mounting student debt prevents an increasing number of young professionals from embarking on the very life for which their education was supposed to prepare them. How have we come from a political environment in which higher education was perceived as a public good, normally free to the user, to an environment in which higher education is seen as a privilege subject primarily to market forces? The Economics of Higher Education in the United States offers a desperately needed analysis in an attempt to understand and tackle this looming problem.

In the last twenty years America's higher-education system has jeopardized our society's very future by allowing a serious decline in educational quality. Responding to modern egalitarianism and the need to attract students, colleges and universities have initiated wildly innovative programs, noncampuses, and nontraditional degrees. Worse, they have lowered all standards. Nonacademic entrepreneurs, attracted by generous federal funds, now demand equal status with established schools. And they are dangerously near receiving this full recognition from irresolute regional accrediting associations.

This paper analyses the changing economic value of higher education in the major O.E.C.D. countries. The first part of the study examines data on earnings by education or earnings in occupations composed of per- sons with different educational attainments. A second part looks at un- employment rates and the occupations attained by college graduates. Both the relative earnings data and the unemployment and occupational attainment data suggest that the heralded decline in the economic value of higher education in the U.S. is not a unique North American phenomenon, but rather, a general development throughout the developed world. On the basis of evidence on elasticities of substitution and the observed growth in the supply of college graduates the paper suggests that the decline in the premium to the educated reflects movement along a reasonably well-defined demand for graduates schedule due to the growth of the college and university systems of the various countries