Do Expenditures Other Than Instructional Expenditures Affect Graduation and Persistence Rates in American Higher Education?
Median instructional spending per full-time equivalent (FTE) student at American colleges and universities has grown at a slower rate the median spending per FTE in a number of other expenditure categories during the last two decades. We use institutional level panel data and a variety of econometric approaches, including unconditional quantile regression models, to analyze whether noninstructional expenditure categories influence first year persistence and graduation rates of American undergraduate students. Our most important finding is that student service expenditures influence graduation and persistence rates and their marginal effects are larger for students at institutions with lower entrance test scores and more lower income students. Put another way, their effects are largest at institutions that have lower current persistence and graduation 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.
|Date of creation:||Aug 2009|
|Date of revision:|
|Publication status:||published in: Economics of Education Review, 2010, 29 (6), 947-958|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2007.
"Unconditional Quantile Regressions,"
NBER Technical Working Papers
0339, National Bureau of Economic Research, Inc.
- 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.
- 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.
- 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.
- 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.
- 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).
- 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).
- 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.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp4345. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.