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Higher Education in the United States: Laissez‐Faire, Differentiation, and Research

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  • Miguel Urquiola

Abstract

The U.S. higher education system stands out in three dimensions. First, it has the highest number of leading research universities. Second, it displays significant differentiation: multiple types of institutions offer services that differ in cost, prestige, etc. Third, it has a laissez‐faire/free‐market orientation: private and public entities are free to open schools and compete; essentially all schools enjoy substantial autonomy. This paper makes the case that these features are systematically related. The development of the American higher education market—which allowed market forces to operate and lacked centralized planning—contributed to the emergence of differentiation and a set of leading research universities.

Suggested Citation

  • Miguel Urquiola, 2023. "Higher Education in the United States: Laissez‐Faire, Differentiation, and Research," Asian Economic Policy Review, Japan Center for Economic Research, vol. 18(2), pages 196-213, July.
    • Handle: RePEc:bla:asiapr:v:18:y:2023:i:2:p:196-213
    DOI: 10.1111/aepr.12419
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    References listed on IDEAS

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