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AIRPO 2019Understanding the Cost Drivers
for Instruction in Multiple DimensionsTom Eleuterio, Higher Education Consortia
Office of Institutional Research & Effectiveness
Delaware Cost Study Data & Research
Two decade study, focused at the academic discipline level, of faculty instructional workload and costs, sponsored research and public service from over 700 four-year, public and private non-profit higher education institutions
“The National Study of Instructional Cost & Productivity”, conducted annually by the Higher Education Consortia at University of Delaware. Results reported here from a grant for public policy research by the Smith Richardson Foundation
Research collaboration with the Education Policy InitiativeDr. Kevin Stange, University of Michigan and Dr. Steven Hemelt University of North Carolina- Chapel Hill
Motivation to Use Delaware Cost Study• College prices ↑ 36% between 2008 and 2018 (College Board, 2018)
− Student and parents now pay for >50% of costs (Desrochers & Hurlburt, 2016)− Concerns about access, persistence, indebtedness and value as an investment
• Improved understanding of cost differences by field, trends, and cost drivers is key tool for tempering future cost growth
• Better understating of costs fuller picture of effects of policies such as financial aid, free college, and incentives to major in specific fieldsExample: High cost of engineering majors makes increasing STEM much less welfare-enhancing than earnings differences would imply (Altonji & Zimmerman, 2017)
Impact on Public Opinion and Policy
https://www.marketwatch.com/story/why-it-costs-colleges-far-more-to-educate-a-physicist-or-teacher-than-an-english-major-2019-02-13?mod=jillian-berman
Our Study Sample• Process of constructing weights honed our sample for future analyses
− Identified outliers, missing data patterns• We focus a subset of 20 disciplines in the study 2000-2015
− Cross-section (2013 – 2105): 7,245 obs → 3,307 programs → 256 institutions
− Panel (2000-2015): 32,496 obs → 6,443 program, → 486 institutions
• Supplemented by IPEDS, OK Salary Survey, other sources• Focus on 20 programs (CIP4 codes) using English (CIP 23.0101) as a
reference for the other 19.
Questions and Analyses1) What are the cost differences, direct instructional expenses
(DIE) by field of study?• At point in time as well as trends over time
2) What drivers account for cost differences by field?• Decompose level and trend differences into 4 candidate
drivers:(A) Personnel costs per FTE instructor(B) Non-personnel costs(C) Faculty workload(D) Class size
3) Simulate costs by substituting those for English as an index
Cost per Student Credit Hour Weighted to Control for Institutional Size & Governance
Our Study Focus
• Selected largely based on size, coverage, policy relevance
10,054
18,001
26,572
2,436
4,763
1,528
1,913
4,371
1,485
Computer/Info Sciences 3,729 1,493
Economics 7,034
Education 6,790 9,360
Electrical Engineering 4,388 2,638
English 13,466
Fine and Studio Arts 7,479
History 10,030
Mathematics 4,917 1,423
Mechanical Engineering 6,562 1,672
Nursing
Philosophy 1,950
Physics 1,560
Political Science 12,022
Psychology
Sociology 9,943
911
997
Avg. number of degrees producedeach year during 2012 to 2015
Accounting 12,144
Biology 17,904
Business 20,980
Chemistry 4,577
Communication 17,565
DegreeType Doctors Masters Bachelors
0K 2K 4K 6K 8K 10K 12K 14K 16K 18K 20K 22K 24K 26K 28K 30K 32K
Avg. Number ofDegrees by Type
Average of Number of Degrees by Type for each Cip4. Color shows details about DegreeType. The marks are labeledby averageof Number of Degrees by Type. The view is filtered on DegreeType and Cip4. The DegreeTypefilter has multiplemembers selected. The Cip4filter has multiple members selected.
High Demand Disciplines Have the Highest Percentage of Online Teaching: Nursing, Education and Business Administration
Snapshot 2013 -2015: Cost Differences by Field
0.74
0.630.60
0.310.26
0.23 0.21 0.200.16
0.110.07
0.00
-0.02-0.05
-0.09 -0.11-0.18 -0.18
-0.22 -0.25
-.4-.2
0.2
.4.6
.8%
diff fr
om En
glish
Electrical Engineering
Nursing
Mechanical Engineering
Education
Fine/Studio Arts
Biz Admin/Mgmt/Operations
Computer/Info Scie
nces
AccountingPhysics
ChemistryBiology
English
Poli Sci/G
overnment
EconomicsHisto
ry
Comm/Media Studies
Psychology
Sociology
Philosophy
Mathematics
Similar Stories Emerge …
-.50
.51
-.50
.51
-.50
.51
-.50
.51
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Accounting Biology Biz Admin/Mgmt/Operations Chemistry Comm/Media Studies
Computer/Info Sciences Economics Education Electrical Engineering Fine/Studio Arts
History Mathematics Mechanical Engineering Nursing Philosophy
Physics Poli Sci/Government Psychology Sociology
% d
iff re
lativ
e to
Eng
lish
1: Actual difference; 2: Equate other exp; 3: Equate salary; 4: Equate workload; 5: Equate class size
Trends in Faculty Mix
0.2
.4.6
.80
.2.4
.6.8
0.2
.4.6
.80
.2.4
.6.8
2000 2005 2010 2015 2000 2005 2010 2015 2000 2005 2010 2015 2000 2005 2010 2015 2000 2005 2010 2015
Accounting Biology Biz Admin/Mgmt/Operations Chemistry Comm/Media Studies
Computer/Info Sciences Economics Education Electrical Engineering English
Fine/Studio Arts History Mathematics Mechanical Engineering Nursing
Philosophy Physics Poli Sci/Government Psychology Sociology
Tenure/TT Other Supplemental
Teaching assistants
% F
acul
ty s
hare
Year
Weighted by SCH*IPW
Cost per student credit hour summarizes four basic cost drivers related to instruction
Workload based on fall semester teaching activity excluding lab sections
Class size is the ratio of fall semester student credit hours divided by three per class section
Salaries are expressed in 2015 dollars using CPI-U
Other than personnel expenses in support of instruction generally range between 3% and 10% of the total direct
instructional expenditures
Differentiated Cost Differences by Carnegie Class and Institutional Governance ( 2013 – 2015)
-.4-.2
0.2
.4.6
.81
% d
iff fr
om E
nglis
h
Electric
al Eng
ineeri
ng
Nursing
Mecha
nical
Engine
ering
Educa
tion
Fine/Stud
io Arts
Accoun
ting
Chemistr
y
Biz Adm
in/Mgm
t/Ope
ration
s
Physic
s
Biology
Compu
ter/In
fo Scie
nces
Poli Sci/G
overn
ment
Econo
mics
Sociolo
gy
Comm/M
edia
Studies
English
History
Mathem
atics
Psycho
logy
Philoso
phy
Pri research Pri comprehensive Pri bacc
Pub research Pub comprehensive Pub bacc
Differentiated Cost Differences by Carnegie Class and Institutional Governance Magnifies Percentage Gaps ( 2013 – 2015)
Privately Governed Research Institutions Have Largest Differences in High Demand Disciplines
-40
-20
0
20
40
60
80
100
Percentage Different from English by Carnegie and Governance
Private Research Public Research
Publicly Governed Comprehensive Institutions HaveLargest Differences in High Demand Disciplines
-40
-20
0
20
40
60
80Percentage in Cost For English for Comprehensive Institutions
Private Comprehensive Public Comprehensive
How does the cost driver analysis differ for undergraduate focused institutions?
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
Instructional Cost Percentage Different from EnglishSorted by Carnegie Baccalaureate Groups
Private bacc Public Bacc
Seven disciplines have costs above English for both publicly and privately governed institutions
0
10
20
30
40
50
60
Nursing Physics Education Fine/Studio Arts Biology Computer/Info Sciences Chemistry
Instructional Cost Percentage Different from EnglishSorted by Carnegie Baccalaureate Groups
Private bacc Public Bacc
Five disciplines show higher costs than English in publicly controlled institutions with the opposite in privately controlled
-40
-30
-20
-10
0
10
20
30
40
50
60
Poli Sci/Government Biz. Admin/Mgmt/Operations Economics Accounting Comm/Media Solutions
Instructional Cost Percentage Different from EnglishSorted by Carnegie Baccalaureate Groups
Private bacc Public Bacc
Five disciplines are less expensive than English for both privately and publicly governed institutions
History Mathematics Philososphy Sociology PsychologyPrivate bacc -16 -20 -30 -30 -36Public Bacc -17 -22 -5 -28 -17
-40
-35
-30
-25
-20
-15
-10
-5
0
Private bacc Public Bacc
1) USE ENGLISH AS AN INDEX BY FIRST COMPUTING THE COST PER STUDENT CREDIT HOUR IN ENGLISH AS A PERCENTAGE OF THE AVERAGE FOR ENGLISH IN THE SAME CARNEGIE AND GOVERNANCE GROUP.
2) COMPUTE A SIMILAR INDEXED PERCENT FOR A SPECIFIC DEPARTMENT OTHER THAN ENGLISH USING THE COST PER STUDENT CREDIT HOUR WITH THE AVERAGE FOR THE SAME DEPARTMENT TYPE AND CARNEGIE AND GOVERNANCE GROUP.
3) COMPUTE THE DIFFERENCE USING THE INDEXED PERCENTAGES FOR A THE DEPARTMENT AND ENGLISH.
Identify cost differences with respect to English then examine how the four cost drivers contribute to the total
Case Study: English is equal ( within 1%) in cost to the average for small BAS, privately governed institutions. Art is 161% more expensive than the average department at other small privately governed institutions. The four cost drivers will reveal why.
Our case study art department pays salaries and benefits that are 14%
higher than the Carnegie & governance
group average
The art department spends 5% more on instructional materials and other non-personnel items than similar departments
The art department teaches almost 30% fewer class sections than art departments in the same Carnegie and governance group; this is approximately one fewer class per FTE instructional faculty member
The art department teaches a small percent more student credit hours per faculty than the group
Use the web portal to benchmark with three-year averages
Table 3 standard cost study teaching ratio comparisons in the web portal provide complementary information
Three year averages in the web portal or peer group reporting provide context and comparisons
Class sections comparisons with a three year average
The number of class section for tenure / tenure track FTE is 0.74 sections smaller than the three year average
Table 4 Cost ratio three year averages in web portal show the aggregated difference in cost per student credit hour
At UD and nationally, ‘Math costs less to teach than English’
-24%
-20%
-22%
-25%
-20%
-15%
-10%
-5%
0%
MATH IS OVER 20 % CHEAPER TO TEACH THAN ENGLISH2015 2016 2017
UD Math $/SCH Higher than Carnegie corresponds to DEA # lower than 1.0
UD English $/SCH Higher than Carnegie corresponds to DEA # lower than 1.0
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2015 2016 2017
Math Dept Cost and DEA summary 2015 - 2017
Math $ / SCH vs Carnegie avg Math DEA # vs Model 2 Average
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2015 2016 2017
English Dept Cost and DEA summary 2015 - 2017
English $ / SCH vs Carnegie avg English DEA # vs Model 2 Average
UD Math Department Externally Sponsored Research and Public Service Funding
Higher than Carnegie and Doctoral Average
UD English Department Externally Sponsored Research and Public Service Funding Higher in 2015 than Doctoral Average
0%
50%
100%
150%
200%
250%
300%
2015 2016 2017
MATH DEPTARTMENTSPONSORED RESEARCH
Math $ Research & Public Service / T-TT vs Carnegie avg
Math $ Research & Public Service / T-TT vs Hi Deg Proportion
0%
20%
40%
60%
80%
100%
120%
140%
2015 2016 2017
ENGLISH DEPARTMENTSPONORED RESEARCH
English $ Research & Public Service / T-TT vs Carnegie avg
English $ Research & Public Service / T-TT vs Hi Deg Proportion
Teaching in Problem Centered Approach Decreases DFW Rate 5% from 2011 baseline
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
200
400
600
800
1000
1200
2011 2012 2013 2014 2015 2016 2017
MATH 115 Pre-Calculus
Grade = D+, D, D-, F, W, Z All grades except L, LW DFW rate
Deployment of Post-Doctoral Faculty Teaching an Increasing Proportion of Students
while Decreasing the DFW Rate
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2014 2015 2016 2017
Impact of Post-Docs in E110 2014 through 2017
Proportion of E110 taught by Post-docs DFW rate Difference DFW rate from Dept
