7. Do Professors' Salaries and Baumol (Service) Cost Disease Explain Why College Costs So Much?

Charging U

02/28/24 • 16 min

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Service fields such as higher education do not experience large improvements in efficiency so the cost of providing that service rises.
The salaries of professors may contribute a minor amount to the rising cost of college; however, reduced teaching loads and other perks are more important factors which cause the price of tuition to go up.

02/28/24 • 16 min

Charging U - 7. Do Professors' Salaries and Baumol (Service) Cost Disease Explain Why College Costs So Much?

Transcript

Episode 6

Do Professor Salaries and Baumol (Service) Cost Disease Explain Why College Costs So Much?

What is Baumol’s Cost Disease and how does it affect what we pay for college? How much do professors’ salaries increase the price we pay for college? We will answer these questions on today’s episode. I am Larry Bernstein and welcome to Charging U.

“We need to go 2-1,’ the chair politely explained, ‘because otherwise we can’t hire anyone.’ Then Dean, now Provo

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