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Who Bears the Growing Cost of Science at Universities?

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  • Ronald G. Ehrenberg
  • Michael J. Rizzo
  • George H. Jakubson

Abstract

Scientific research has come to dominate many American universities. Even with growing external support, increasingly the costs of scientific research are being funded out of internal university funds. Our paper explains why this is occuring, presents estimates of the magnitudes of start-up cost packages being provided to scientists and engineers and then uses panel data to estimate the impact of the growing cost of science on student/faculty ratios, faculty salaries and undergraduate tuition.We find that universities whose own expenditures on research are growing the most rapidly, ceteris paribus, have had the greatest increase in student faculty ratios and, in the private sector, higher tuition increases. Thus, undergraduate students bear part of the cost of increased institutional expenditures on research.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9627.

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Date of creation: Apr 2003
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Publication status: published as Ehrenberg, R. and P. Stephan (eds.) Science and the University. University of Wisconsin Press, 2007.
Handle: RePEc:nbr:nberwo:9627

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  1. Ronald G. Ehrenberg, 2002. "Studying Ourselves: The Academic Labor Market," NBER Working Papers 8965, National Bureau of Economic Research, Inc.
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Cited by:
  1. Jeremy Foltz & Bradford Barham & Jean-Paul Chavas & Kwansoo Kim, 2012. "Efficiency and technological change at US research universities," Journal of Productivity Analysis, Springer, vol. 37(2), pages 171-186, April.
  2. Courty, Pascal & Sim, John, 2012. "What is the cost of retaining and attracting exceptional talents? Evidence from the Canada Research Chair program," CEPR Discussion Papers 8966, C.E.P.R. Discussion Papers.
  3. William R. Johnson & Sarah Turner, 2009. "Faculty without Students: Resource Allocation in Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 169-89, Spring.
  4. James D. Adams, 2009. "Is the U.S. Losing Its Preeminence in Higher Education?," NBER Working Papers 15233, National Bureau of Economic Research, Inc.
  5. Dahlia K. Remler & Elda Pema, 2009. "Why do Institutions of Higher Education Reward Research While Selling Education?," NBER Working Papers 14974, National Bureau of Economic Research, Inc.
  6. Grant C. Black & Paula E. Stephan, 2010. "The Economics of University Science and the Role of Foreign Graduate Students and Postdoctoral Scholars," NBER Chapters, in: American Universities in a Global Market, pages 129-161 National Bureau of Economic Research, Inc.
  7. Jennifer Clark, 2010. "Coordinating a conscious geography: the role of research centers in multi-scalar innovation policy and economic development in the US and Canada," The Journal of Technology Transfer, Springer, vol. 35(5), pages 460-474, October.
  8. Ronald G. Ehrenberg, 2005. "Involving Undergraduates in Research To Encourage Them To Undertake Ph.D. Study in Economics," American Economic Review, American Economic Association, vol. 95(2), pages 184-188, May.

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