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An economic analysis of the demand for graduate education

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  • This study is an economic analysis of enrollment demand for graduate education at Oregon State University as well as in the United States. For the analysis of Oregon State University data on new graduate enrollment, data were obtained for 27 academic departments with 10 observations per department. The most important objective of this study was to determine the reasons for variation in demand for graduate education at Oregon State University and in the United States. Monetary gains associated with graduate education and the quality of the graduate program offered by the institution were hypothesized to have a significant, positive effect on graduate enrollment demand. The size of the tuition was hypothesized to be inversely related to the number of new enrollments demanded. The level of admission requirements was hypothesized to have a significant, negative effect on graduate enrollment demand. It was also hypothesized that the demand for graduate enrollment varies significantly among disciplines. Along with a "size of tuition" variable, shown by other investigators to be related to college enrollment, the institutional model incorporated the monetary gains associated with graduate education, minimum grade point average for admission and binary variables representing the academic department variables hypothesized here also to be associated with graduate enrollment demand. From the estimated coefficients of the institutional model, it was concluded that the demand for new graduate enrollment varies significantly among most of the disciplines. Also, it was concluded that, for Oregon State University, a proportional increase in the graduate tuition level will be associated with a less than proportional decrease in the number of enrollments demanded. The positive sign and the statistical significance of the estimated coefficient associated with the monetary gains variable support the human capital view of the demand for graduate education. For the national model only 12 observations on first year graduate enrollment were available. The unemployment rate for master's and doctoral degree holders and family income were hypothesized to have negative and positive effects, respectively, on enrollment demand for graduate education. For the ordinary least square estimation, the Durbin-Watson test was inconclusive. A generalized least square procedure was used to correct for the presence of a first order auto-regressive error term structure. The results supported the hypothesis of an inverse relationship between the unemployment rate and graduate enrollment demand. Results with respect to the role of income, however, were mixed. An important implication of the institutional estimation is that, for an institution faced with graduate enrollment ceilings, any attempt by the administration to increase the grade point average for admission will place additional pressure on that institution to live within the enrollment ceilings. On the other hand, data limitations precluded examining the possibility that, for some disciplines and for some institutions, the demand-rationing aspect of the minimum grade point average requirement will overwhelm the "quality of the program" component. For such cases an increase in the grade point average requirement may, in fact, reduce enrollment demand. An important implication of the national estimation is that one should be very cautious in recommending some kind of income enhancing program as a vehicle for increasing the demand for graduate enrollment. However, because it was not possible to measure the effect of direct financial assistance on enrollment demand, one cannot infer that increasing the availability of financial assistance for graduate study would not increase the enrollment demand.
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file details KHANAHMAD1977.pdf 2017-08-15 公开 下载