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Decomposing financial inequality across U.S. higher education institutions

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  • Cheslock, John J.
  • Shamekhi, Yahya

Abstract

The level of financial inequality among U.S. higher education institutions has important implications for students and society, yet few scholars have examined this topic using established methods for measuring inequality. This paper updates and extends previous work while introducing decompositions that shed light into key trends that we observed for the 2004–2017 period: increasing inequality in total expenditures and decreasing inequality in per-student expenditures. The results of our decomposition highlight how these opposing trends related to rising differences in enrollments and an increasingly positive correlation between an institution's enrollment level and its expenditures per student. Our decomposition results also show that both between-group differences and within-group differences contributed to the observed trends. Further examination of within-group differences reveals that inequality patterns differed meaningfully by institutional type, with doctoral universities and private baccalaureate colleges possessing higher levels of inequality and a more positive correlation between per-student expenditures and enrollments than master's institutions and public associate's colleges.

Suggested Citation

  • Cheslock, John J. & Shamekhi, Yahya, 2020. "Decomposing financial inequality across U.S. higher education institutions," Economics of Education Review, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:ecoedu:v:78:y:2020:i:c:s0272775720305215
    DOI: 10.1016/j.econedurev.2020.102035
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    References listed on IDEAS

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    1. John J. Cheslock & Matt Gianneschi, 2008. "Replacing State Appropriations with Alternative Revenue Sources: The Case of Voluntary Support," The Journal of Higher Education, Taylor & Francis Journals, vol. 79(2), pages 208-229, March.
    2. Estelle James, 1978. "Product Mix and Cost Disaggregation: A Reinterpretation of the Economics of Higher Education," Journal of Human Resources, University of Wisconsin Press, vol. 13(2), pages 157-186.
    3. Cowell, Frank, 2011. "Measuring Inequality," OUP Catalogue, Oxford University Press, edition 3, number 9780199594047.
    4. Bound, John & Turner, Sarah, 2007. "Cohort crowding: How resources affect collegiate attainment," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 877-899, June.
    5. John Bound & Michael F. Lovenheim & Sarah Turner, 2012. "Increasing Time to Baccalaureate Degree in the United States," Education Finance and Policy, MIT Press, vol. 7(4), pages 375-424, September.
    6. David J. Deming & Christopher R. Walters, 2017. "The Impact of Price Caps and Spending Cuts on U.S. Postsecondary Attainment," NBER Working Papers 23736, National Bureau of Economic Research, Inc.
    7. Gordon C. Winston, 1999. "Subsidies, Hierarchy and Peers: The Awkward Economics of Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 13-36, Winter.
    8. Ozan Jaquette & Edna Parra, 2016. "The Problem with the Delta Cost Project Database," Research in Higher Education, Springer;Association for Institutional Research, vol. 57(5), pages 630-651, August.
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    Cited by:

    1. John J. Cheslock & Ozan Jaquette, 2022. "Concentrated or Fragmented? The U.S. Market for Online Higher Education," Research in Higher Education, Springer;Association for Institutional Research, vol. 63(1), pages 33-59, February.

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    More about this item

    Keywords

    Educational finance; Expenditures;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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