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Who Bears the Growing Cost of Science at Universities?

Author

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

Abstract

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.

Suggested Citation

  • Ronald G. Ehrenberg & Michael J. Rizzo & George H. Jakubson, 2003. "Who Bears the Growing Cost of Science at Universities?," NBER Working Papers 9627, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:9627
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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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    Cited by:

    1. Stephan, Paula E., 2010. "The Economics of Science," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 217-273, Elsevier.
    2. Rosenbloom, Joshua L. & Ginther, Donna K., 2017. "Show me the Money: Federal R&D Support for Academic Chemistry, 1990–2009," Research Policy, Elsevier, vol. 46(8), pages 1454-1464.
    3. John Sim & Pascal Courty, 2012. "What Is The Cost Of Retaining And Attracting Exceptional Talents? Evidence From The Canada Research Chair Program," Working Paper 1294, Economics Department, Queen's University.
    4. William R. Johnson & Sarah Turner, 2009. "Faculty without Students: Resource Allocation in Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 169-189, Spring.
    5. James D. Adams, 2009. "Is the U.S. Losing Its Preeminence in Higher Education?," NBER Working Papers 15233, National Bureau of Economic Research, Inc.
    6. Jürgen Janger & Nicole Schmidt-Padickakudy & Anna Strauss-Kollin, 2019. "International Differences in Basic Research Grant Funding. A Systematic Comparison," WIFO Studies, WIFO, number 61664.
    7. Matthew P. Nagowski, 2006. "Associate Professor Turnover at America's Public and Private Institutions of Higher Education," The American Economist, Sage Publications, vol. 50(1), pages 69-79, March.
    8. Grant C. Black & Paula E. Stephan, 2010. "The Economics of University Science and the Role of Foreign Graduate Students and Postdoctoral Scholars," NBER Chapters, in: American Universities in a Global Market, pages 129-161, National Bureau of Economic Research, Inc.
    9. Jeremy Foltz & Bradford Barham & Jean-Paul Chavas & Kwansoo Kim, 2012. "Efficiency and technological change at US research universities," Journal of Productivity Analysis, Springer, vol. 37(2), pages 171-186, April.
    10. Le, Tam-Tri & Nguyen, Minh-Hoang, 2022. "Tra cứu nhanh về hai chủ đề quan trọng với học giới," OSF Preprints b4sma, Center for Open Science.
    11. Jennifer Clark, 2010. "Coordinating a conscious geography: the role of research centers in multi-scalar innovation policy and economic development in the US and Canada," The Journal of Technology Transfer, Springer, vol. 35(5), pages 460-474, October.
    12. Ronald G. Ehrenberg, 2005. "Involving Undergraduates in Research To Encourage Them To Undertake Ph.D. Study in Economics," American Economic Review, American Economic Association, vol. 95(2), pages 184-188, May.
    13. Susan Christopherson & Jennifer Clark, 2010. "Limits to ‘The Learning Region’: What University-centered Economic Development Can (and Cannot) do to Create Knowledge-based Regional Economies," Local Economy, London South Bank University, vol. 25(2), pages 120-130, March.
    14. Mario Coccia, 2019. "Metabolism of Public Research Organizations: How Do Laboratories Consume State Subsidies?," Public Organization Review, Springer, vol. 19(4), pages 473-491, December.
    15. James C. Hearn & T. Austin Lacy & Jarrett B. Warshaw, 2014. "State Research and Development Tax Credits," Economic Development Quarterly, , vol. 28(2), pages 166-181, May.
    16. Dahlia K. Remler & Elda Pema, 2009. "Why do Institutions of Higher Education Reward Research While Selling Education?," NBER Working Papers 14974, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J0 - Labor and Demographic Economics - - General

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