Tuesday, 22 December 2009

Where does all that tuition go?

The following comes from an AEI report "Where Does All That Tuition Go?" by Mark Schneider.

We know that the costs of attending postsecondary institutions are increasing at a rate higher than inflation. And there is evidence that institutions are using a disproportionate share of these revenues for institutional and administrative costs rather than for instructional ones. This (mis)allocation is taking place in an environment in which the federal and state governments continue to pump large amounts of money into higher education without asking institutions to meet performance standards.
The above is based on US data, but I would be very surprised if there was not a similar trend in New Zealand. There appears to be an totally elastic supply of unnecessary administrators around the traps.

(HT: Carpe Diem)

No comments: