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Are Universities Becoming More Unequal?

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  • Yan Lau
  • Harvey S. Rosen

Abstract

Observers have expressed concern about growing inequality in resources across universities. But are universities really becoming more unequal? We argue that the typical approach of examining endowment growth alone is not sensible. In line with the literature on household inequality, we focus instead on a comprehensive income measure. We find that although there is considerable inequality among institutions, concerns about the inexorable growth of inequality are overblown. Whether one looks at income, endowment wealth, or expenditure, inequality has been high but stable, exhibiting only negligible increases in recent years. Furthermore, there has been little mobility within the higher education sector.

Suggested Citation

  • Yan Lau & Harvey S. Rosen, 2015. "Are Universities Becoming More Unequal?," NBER Working Papers 21432, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21432
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    References listed on IDEAS

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    Cited by:

    1. Harvey S. Rosen & Alexander J. W. Sappington, 2016. "What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income," Education Finance and Policy, MIT Press, vol. 11(4), pages 404-425, Fall.

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    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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