Do expenditures other than instructional expenditures affect graduation and persistence rates in American higher education?
During the last two decades, median instructional spending per full-time equivalent (FTE) student at American 4-year colleges and universities has grown at a slower rate than median spending per FTE student in a number of other expenditure categories, including academic support, student services and research. Our paper uses institutional level panel data and a variety of econometric approaches, including unconditional quantile regression methods, to analyze whether these non-instructional expenditure categories influence graduation and first-year persistence rates of undergraduate students. Our most important finding is that student service expenditures influence graduation and persistence rates and their marginal effects are higher for students at institutions with lower entrance test scores and higher Pell Grant expenditures per student. Put another way, their effects are largest at institutions that have lower current graduation and first-year persistence rates. Simulations suggest that reallocating some funding from instruction to student services may enhance persistence and graduation rates at those institutions whose rates are currently below the medians in the sample.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roland G. Fryer & Michael Greenstone, 2007. "The Causes and Consequences of Attending Historically Black Colleges and Universities," NBER Working Papers 13036, National Bureau of Economic Research, Inc.
- Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2007.
"Unconditional Quantile Regressions,"
NBER Technical Working Papers
0339, National Bureau of Economic Research, Inc.
- Pfeifer, Christian & Cornelißen, Thomas, 2010.
"The impact of participation in sports on educational attainment--New evidence from Germany,"
Economics of Education Review,
Elsevier, vol. 29(1), pages 94-103, February.
- Cornelissen, Thomas & Pfeifer, Christian, 2007. "The Impact of Participation in Sports on Educational Attainment: New Evidence from Germany," IZA Discussion Papers 3160, Institute for the Study of Labor (IZA).
- Thomas Cornelißen & Christian Pfeifer, 2007. "The Impact of Participation in Sports on Educational Attainment: New Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 68, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Jill M. Constantine, 1995. "The effect of attending historically black colleges and universities on future wages of black students," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(3), pages 531-546, April.
- Dolan, Robert C. & Schmidt, Robert M., 1994. "Modeling institutional production of higher education," Economics of Education Review, Elsevier, vol. 13(3), pages 197-213, September.
- de Groot, Hans & McMahon, Walter W & Volkwein, J Fredericks, 1991. "The Cost Structure of American Research Universities," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 424-31, August.
When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:29:y:2010:i:6:p:947-958. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.