Faculty “Cost per Enrolled Student” Varies Widely

Average pay for professors is one important determinant of the "cost per enrolled student."

Average pay for professors is one important determinant of the “cost per enrolled student.” Source: “Faculty Deployment in Research Universities.”

More fascinating data from “Faculty Deployment in Research Universities,” co-authored by University of Virginia economics professor Sarah Turner….

Best paid fields. A key finding of her research is that average faculty salaries vary widely from department to department, depending upon supply and demand considerations specific to each field. Disciplines in which Ph.D.s are employed outside of academia tend to fare better than those with more restricted options. Also, departments that generate outside research dollars pay more as universities engage in bidding wars to recruit star faculty.

Consequently, at UVa’s College of Arts & Sciences fields, computer science and economics professors tend to earn a lot more than English, history and philosophy professors. As a history major, I’m disappointed, but there’s no surprise here. We’re seeing market forces at work.

Cost per enrolled student. Turner and  co-author Paul N. Courant then calculated the faculty cost per enrolled student for each of ten departments. They saw two main variables at work here: (1) how much faculty members are paid, and (2) how many students they teach. As noted in the previous blog post, the more highly a professor is paid, the fewer students he or she is likely to teach.

I must confess that I have long thought that the “hard” sciences were more expensive to teach — their faculty were more likely to engage in research and teach less. But that’s not the case at all. A critical variable I had overlooked is how writing-intensive a course is. Fields like English, history and philosophy require a lot of discussion and writing, and the tasks of teaching and grading students are extremely time-intensive. By necessity, their class sizes are smaller.

By contrast, other disciplines have courses that better lend themselves to lecture-hall teaching, and their answers have more clear right/wrong answers that are easily graded. Faculty can teach larger classes without a diminution in quality.

Thus, we find that teaching English (the most expensive discipline) entails more than three times the faculty cost per student than computer science (the least expensive).

Bacon’s bottom line: It is ironic that it takes two economics professors to generate these numbers. This is precisely the kind of analysis that universities should be undertaking themselves — for every academic department. If we think of English degrees, philosophy degrees, chemistry degrees, computer-science degrees and the like as different product lines, universities should know exactly how much (1) each degree costs to deliver, (2) how much each degree generates in revenue, and (3) how much each degree generates in surplus revenue (or operating profit).

Now, I’m not saying that we should start cutting the English department just because it is “losing” money. Perhaps English writing and reading comprehension is a foundational skill that justifies maintaining writing & critical thinking courses regardless of cost. (There may be less justification for poetry, Medieval literature and post-modern literary criticism.) But when it comes to reallocating resources within a university, administrators and department heads should know at a minimum whether different departments and programs within those departments are money sinks or money generators.

Do universities ask these kinds of questions? Highly dubious. Turner and Courant would not have felt compelled to do their research had UVa and University of Michigan administrations conducted the analysis themselves. The lack of such analytical rigor and the ignorance of underlying costs, I would suggest, is a huge contributor to the rising cost of tuition. How is intelligent cost control even possible? When it comes to university administrations, ignorance is not bliss. Ignorance contributes to runaway tuition, student over-indebtedness and the degradation of living standards for an entire generation.