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To support and elaborate on the parent comment: College tuition has increased faster than inflation, but this is not unique among service industries [1] [2].
by jpeloquin 6y ago
To support and elaborate on the parent comment:
College tuition has increased faster than inflation, but this is not unique among service industries [1] [2]. The causes include [2]:
1. "Cost disease." Labor productivity has not increased in higher education, but has increased in industries that produce physical products, so costs have risen in general. Because educator productivity is flat, yet costs are increasing, the price of college increases faster than average.
2. Higher education needs highly educated workers. The wage gap between workers with and without a degree has grown over time [3], so the price of college grows faster than average. There may be a feedback loop here.
3. Technology adds cost to higher education because it has to be acquired, supported, and taught, without (yet) any commensurate increase in educator productivity. So the price rises.
Although tuition inevitably rises in /price/, it could still be /affordable/. It is less affordable now in the US than it used to be mainly because wages have not kept pace with GDP and, as the parent comment mentioned, state support for public colleges has decreased.
Note that [2] is a higher education industry publication, so it may have some bias. In particular its defense of the relative growth in college administrative staff compared to the growth of enrollment seems shaky. But the above points appear valid.
[1] https://www.aei.org/carpe-diem/chart-of-the-day-or-century/ https://www.aei.org/carpe-diem/chart-of-the-day-or-century/
[2] http://www.ntrp16.org/sites/default/files/Resources/ACE-%20The%20Anatomy%20of%20College%20Tuition.pdf http://www.ntrp16.org/sites/default/files/Resources/ACE-%20T...
[3] https://www.bls.gov/charts/usual-weekly-earnings/usual-weekly-earnings-over-time-by-education.htm https://www.bls.gov/charts/usual-weekly-earnings/usual-weekl...