Who Bears the Growing Cost of Science at Universities?

41 Pages Posted: 19 Apr 2003 Last revised: 2 Oct 2009

See all articles by Ronald G. Ehrenberg

Ronald G. Ehrenberg

ILR-Cornell University; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

George H. Jakubson

ILR-Cornell University

Michael J. Rizzo

ILR-Cornell University

Date Written: April 2003

Abstract

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.

Suggested Citation

Ehrenberg, Ronald G. and Jakubson, George H. and Rizzo, Michael J., Who Bears the Growing Cost of Science at Universities? (April 2003). NBER Working Paper No. w9627. Available at SSRN: https://ssrn.com/abstract=396687

Ronald G. Ehrenberg (Contact Author)

ILR-Cornell University ( email )

Higher Education Research Institute
Ithaca, NY 14853-3901
United States
607-255-3026 (Phone)
607-255-4496 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
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IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

George H. Jakubson

ILR-Cornell University ( email )

Higher Education Research Institute
Ithaca, NY 14853-3901
United States

Michael J. Rizzo

ILR-Cornell University ( email )

Higher Education Research Institute
256 Ives Hall
Ithaca, NY 14853-3901
United States

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