Widening Tuition Gaps: Financial Disparities Among U.S. Public Universities

• In Event: Costing Education: Evidence-Based Approaches to Equity and Adequacy in School Finance

Abstract

This study investigates financial disparities among 1,619 U.S. public higher education institutions using 2004–2021 data from the Integrated Postsecondary Education Data System (IPEDS). Using a Linear Quantile Mixed Model, we find that tuition per student has risen much faster in flagship institutions—already starting with higher revenue—than in public four-year and two-year institutions. Within each type, high-tuition institutions show steeper increases than low-tuition peers. Retention rate gaps, however, have remained stable. These trends suggest that high-cost institutions face little pressure to limit tuition growth, potentially deepening educational inequality and socioeconomic stratification in a market-driven higher education system.

Authors

• Jungwook Kim, University of Cincinnati

• Seonjin Kim, Miami University (OH)

• Joel R. Malin, Miami University (OH)