College-educated workers are less likely to experience unemployment, but their lifetime earnings are also much more uncertain. This column estimates the risk-adjusted value of college education to be between $225,000 and almost $600,000, corresponding to risk-adjusted increases in total present-value lifetime wealth of 35% to 48%. Increased earnings volatility actually decreased the risk-adjusted value of college between 1968–1980 and 1991–2011 by almost $50,000, even though expected lifetime income increased by about $150,000. Nevertheless, even the most conservative estimates of the value of college education are still positive.
Jeffrey R. Brown, Chichun Fang, Francisco Gomes, 23 March 2015
Ian Fillmore, 04 March 2015
Colleges in the US charge high sticker prices but routinely offer discounts to individual students. This column presents research showing that colleges use a student’s federal aid form to learn about willingness-to-pay and to engage in substantial price discrimination in a way that amounts to a tax on income, with the primary effect of increasing tuition revenues. Nevertheless, the price discrimination also results in some redistribution to low-income students as well as a modest increase in student–college match quality.
Amanda Goodall, John McDowell, Larry Singell, 31 January 2014
Much of human knowledge is produced in the world’s university departments, yet little is known about how these hundreds of thousands of departments are best organised and led. This column explores the association between the personal research output of a department head and the department’s subsequent performance. Results suggest that if a department wants to improve its reputation in the world, then the chair should be a highly cited researcher.
Daniel Sgroi, 11 November 2013
In the upcoming UK Research Excellence Framework, a small panel of academics are tasked with rating thousands of academic submissions, which will result in university departments being ranked and public money being distributed. Given the enormity of the task and the scarcity of the resources devoted to it, this article discusses a straightforward procedure that might help, based on exactly the Bayesian methods that academic economists study and teach when considering the problem of decision-making under uncertainty.
John McCormack, Carol Propper, Sarah Smith, 07 November 2013
The conventional wisdom is that managing academics is futile. This column challenges this view by comparing management performance in UK universities with measures of research and teaching quality. Universities with better management have better performance. This holds for all types of universities, and the results are not driven by differences in resources. Recruitment, retention, and promotion are the most important aspects of management in universities, but management at the level of academic departments – not human resources departments – is what matters.
David Hummels, Rasmus Jørgensen, Jakob R. Munch, Chong Xiang , 10 December 2011
With stagnating wages and lingering unemployment, income inequality is back in the headlines. Is globalisation to blame for this inequality? Is more education a solution? This column argues that focusing on university education misses important effects. It presents evidence that wage effects vary markedly among those with degrees depending on their specific skill sets, and that globalisation can often benefit workers without degrees
Philippe Belley, Marc Frenette, Lance Lochner, 24 September 2011
As scores of young men and women wave goodbye to their parents and prepare to start their university educations, this column asks whether providing more financial aid would increase the number of students enrolling from the poorest backgrounds. It looks at data from the US and Canada to see if the differences in funding for disadvantaged students can explain some of the differences in educational and social outcomes between the two countries.
Ben Wildavsky, 12 November 2010
Ben Wildavsky of the Kauffman Foundation talks to Romesh Vaitilingam about his book ‘The Great Brain Race: How global universities are reshaping the world’. Among other things, they discuss higher education funding and student finance, the rapidly growing international mobility of students and faculty, and the potential problem of ‘academic protectionism’. The interview was recorded at the London School of Economics in October 2010. [Also read the transcript]
Catherine M. Haeck, Frank Verboven, 17 June 2010
How does a university organise its hiring and promotion policy? This column presents evidence on the personnel policy of a large European university. It suggests that the university is organised as an internal labour market, and while promotion dynamics depend on research and teaching performance, persistent administrative rigidities remain.
Romina Boarini, Joaquim Oliveira Martins, 24 September 2008
OECD governments spend a lot on education, but are their investments paying off? This column analyses how public policy affects individuals’ decisions to invest in education and identifies opportunities for reform.
Yao Amber Li, John Whalley, Shunming Zhang , Xiliang Zhao, 18 April 2008
Unlike most developing economies, China’s educational policy focuses on upgrading higher education. This column summarises the major transformation occurring in China – including nearly a quintupling in enrolments – and highlights its implications for the global economy.
Dan Ben-David, 14 March 2008
This second column on Israeli academic migration to the United States examines the differences in higher education policies that are driving the brain drain.
Frank Verboven, Stijn Kelchtermans, 08 October 2007
As most governments are still reluctant to raise private contributions through tuition fees, instead they have taken measures to reduce the wide duplication of study programmes across a large number of campuses. The authors of CEPR DP6508 study the welfare and profit effects of dropping duplicated programmes at individual institutions and find that this tends to be socially undesirable, due to limited cost savings and students’ relatively low mobility.