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Are Universities Becoming More Unequal?

Author

Listed:
  • Yan Lau

    (Reed College)

  • Harvey S. Rosen

    (Princeton University)

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?," Working Papers 245, Princeton University, Department of Economics, Center for Economic Policy Studies..
  • Handle: RePEc:pri:cepsud:245
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    File URL: https://gceps.princeton.edu/wp-content/uploads/2017/01/245rosen.pdf
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    References listed on IDEAS

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    1. Are Universities Becoming More Unequal?
      by maximorossi in NEP-LTV blog on 2016-07-22 18:26:54

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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:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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