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Who Bears the Growing Cost of Science at Universities?

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

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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File URL: http://www.nber.org/papers/w9627.pdf
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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
Note: ED
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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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