ERIC Number: EJ905592
Record Type: Journal
Publication Date: 2010-Dec
Abstractor: As Provided
Reference Count: 0
Do Expenditures Other than Instructional Expenditures Affect Graduation and Persistence Rates in American Higher Education?
Webber, Douglas A.; Ehrenberg, Ronald G.
Economics of Education Review, v29 n6 p947-958 Dec 2010
During the last two decades, median instructional spending per full-time equivalent (FTE) student at American 4-year colleges and universities has grown at a slower rate than median spending per FTE student in a number of other expenditure categories, including academic support, student services and research. Our paper uses institutional level panel data and a variety of econometric approaches, including unconditional quantile regression methods, to analyze whether these non-instructional expenditure categories influence graduation and first-year persistence rates of undergraduate students. Our most important finding is that student service expenditures influence graduation and persistence rates and their marginal effects are higher for students at institutions with lower entrance test scores and higher Pell Grant expenditures per student. Put another way, their effects are largest at institutions that have lower current graduation and first-year persistence rates. Simulations suggest that reallocating some funding from instruction to student services may enhance persistence and graduation rates at those institutions whose rates are currently below the medians in the sample. (Contains 8 tables and 2 figures.)
Descriptors: Undergraduate Students, Educational Finance, Expenditure per Student, Full Time Equivalency, Graduation Rate, Academic Persistence, College Instruction, School Holding Power, College Freshmen, Economics, Student Personnel Services, Simulation, Correlation, Program Effectiveness
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: Higher Education; Postsecondary Education
Authoring Institution: N/A