Dive Brief:
- An analysis of National Center for Education Statistics data that tracked a cohort of 15,000 students first surveyed as sophomores in 2002 reveals correlations between certain types of institutional spending and student outcomes.
- Inside Higher Ed reports that a new study by researchers at Wake Forest University and Colorado College shows spending on faculty yields better employment outcomes for disadvantaged students, and spending on student services has a greater impact on the same for wealthier students and those whose parents have more education.
- The study also modeled student employment outcomes tied to academic support and research, but the strongest correlations came from instructional spending and spending on student services like career counseling and tutoring.
Dive Insight:
Many institutions have decreased instructional spending as they rely on less expensive adjunct faculty, but the study indicates that doing the opposite is best for disadvantaged students. While surely there are outliers that spend a lot on lower-performing faculty, the researchers expect higher instructional spending to lead directly to higher-quality instructors. These instructors lead to higher salaries for their students when they hit the job market, according to the data. When it comes to spending on student services, higher spending is correlated most strongly with graduates getting a job in their field rather than significant salary bumps.
As institutions struggle with tight budgets, considering where the money has the most impact is key, especially as government funding trends toward being awarded based on student outcomes.