NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Who Bears the Growing Cost of Science at Universities?

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

NBER Working Paper No. 9627
Issued in April 2003
NBER Program(s):   ED

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.

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Document Object Identifier (DOI): 10.3386/w9627

Published: Ehrenberg, R. and P. Stephan (eds.) Science and the University. University of Wisconsin Press, 2007.

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