Is Underemployment of Recent College Grads a Serious Problem?

For decades, the American higher education establishment was able to sell the idea that promoting college was sound policy because it seemed that nearly all graduates found good, high-paying jobs. But around 15 years ago, people began to notice that a rather large percentage of college grads were taking low-skill jobs with poor pay and … Continue reading “Is Underemployment of Recent College Grads a Serious Problem?”

Are College Presidents Paid Too Much?

In a typical week, I get four or five inquiries from media relating to some higher education issue. Five years ago, perhaps five or ten percent of those inquiries related to university executive compensation, especially the salaries of presidents. Now, probably 40-50 percent of the queries are on that topic. The public is increasingly interested … Continue reading “Are College Presidents Paid Too Much?”

Universities in Islamic nations make the same mistakes we do—but worse

Universities are great inventions, and they have a role everywhere, in areas rich and poor, Christian, Islamic, and even atheist. But the Law of Diminishing Returns applies: universities in small doses can disseminate and advance knowledge in welfare-inducing ways, but if expanded too fast, they produce dismal results at the margin. In the Middle East/North African region, this problem is aggravated by over-centralization.

The High Cost and Low Productivity of Our Higher Education System: What it Means for America

I am honored by the invitation to speak to you today. The Pope Center is a very positive force in rethinking higher education in America. I am somewhat surprised, frankly, that I was invited to speak, since I am an economist, and economists suffer from two defects. First, they are deadly dull. It is usually more fun watching paint dry than listening to an economist. Indeed, it might even be preferable to have a hemorrhoid operation without an anesthetic from an unlicensed French physician to having to listen to an economist pontificate.

Why Does College Cost So Much?

As college students begin a new academic year, many parents are reeling from tuition fees. This fall’s probable average 8% increase at public universities, added onto double-digit hikes in the two previous years, means tuition at a typical state university is up 36% over 2002 – at a time when consumer prices in general rose less than 9%. In inflation-adjusted terms, tuition today is roughly triple what it was when parents of today’s college students attended school in the ’70s. Tuition charges are rising faster than family incomes, an unsustainable trend in the long run. This holds true even when scholarships and financial aid are considered. One consequence of rising costs is that college enrollments are no longer increasing as much as before. Price-sensitive groups like low-income students and minorities are missing out. A smaller proportion of Hispanics between 18 and 24 attend college today than in 1976. The U.S. is beginning to fall below some other industrial nations in population-adjusted college attendance.