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Why Does College Cost So Much?
304 pages, 2014
economics & politics
987 booksMuch has been written about the rising cost of higher education. Luxurious amenities, game-playing administrators, and bloated bureaucracies are all common targets of criticism. But this book takes a different approach.
The writers put the business of college squarely within the context of economic history—a place it is rarely found—to explain how and why costs have increased. It's no surprise that tuition costs resemble those in many other sectors. Higher education is a personalized service that relies on well-educated employees.
In recent decades, three factors have come together to drive higher education expenses far faster than inflation: economic development, which drives demand up; technology, which increases productivity; and globalization, which allows for outsourcing labor to cheaper regions.
In 'Why Does College Cost So Much?', Robert B. Archibald explores the reasons behind the high cost of college education. He explains that it's not just about inflation or greed, but a complex mix of factors including technological changes, labor market shifts, and government policies.
Archibald digs into the role of technology in driving up college costs. Unlike other sectors where technology reduces costs, in education, it often leads to higher costs. This is because education relies on highly skilled labor and technology often enhances, rather than replaces, their work.
The book also takes a look at how government policies contribute to the rising cost of college. Archibald finds that well-intentioned policies can sometimes have unintended consequences, such as making college more expensive by increasing demand without addressing supply.
Archibald introduces us to the concept of 'cost disease'. This is a phenomenon where costs rise in industries that rely heavily on labor, like education. As wages rise in other sectors, colleges have to pay more to attract and retain staff, driving up costs.
Despite the high cost, Archibald argues that college is still a good investment. He researches the long-term benefits of a college degree, such as higher lifetime earnings and better job prospects. So, while the price tag may seem steep, the payoff can be worth it.
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