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An Examination of the Influence of Decreases in State Appropriations on Online Enrollment at Public Universities

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  • Justin C. Ortagus

    (University of Florida)

  • Lijing Yang

    (Ohio University)

Abstract

State support for public higher education has been a primary concern for decades. Online education has been identified previously as an alternative revenue source that can offer financial relief to colleges and universities. This study uses IPEDS data and a fixed effects regression approach to examine whether public universities increase their reliance on online education in response to decreases in state appropriations. Consistent with resource dependence theory, we found a negative relationship between state appropriations and online enrollment at public 4-year institutions. Our findings indicate that public universities, particularly public doctoral institutions, appear to be responding to declines in state appropriations by engaging in revenue diversification and increasing their commitment to online education.

Suggested Citation

  • Justin C. Ortagus & Lijing Yang, 2018. "An Examination of the Influence of Decreases in State Appropriations on Online Enrollment at Public Universities," Research in Higher Education, Springer;Association for Institutional Research, vol. 59(7), pages 847-865, November.
    • Handle: RePEc:spr:reihed:v:59:y:2018:i:7:d:10.1007_s11162-017-9490-y
    DOI: 10.1007/s11162-017-9490-y
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    References listed on IDEAS

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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.
    2. Hamilton, Laura T. & Daniels, Heather & Smith, Christian Michael & Eaton, Charlie, 2022. "The Private Side of Public Universities: Third-party providers and platform capitalism," University of California at Berkeley, Center for Studies in Higher Education qt7p0114s8, Center for Studies in Higher Education, UC Berkeley.

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