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Article Type

Professional Proficiency

Article Abstract

Related Issue:

This article presents an applied research framework that can be helpful in tuition and net price policy discussions. It is the classic microeconomic concept of market demand applied to enrollment management in higher education. The policy relevance includes measuring a response to price. For example, the results of this model will allow the enrollment manager to determine the percentage change in enrollment from a given percentage change in tuition. This article presents the steps to develop an empirical market demand curve to answer the question of how much enrollment changes when specific factors change. The data used in this approach is available at most institutions. Data is analyzed using ordinary least squares regression, and policy recommendations are made based on these empirical findings. The approach can be replicated with institutional data and staff with basic skills in regression analysis.

Author(s)

Darin Wohlgemuth is the director of assessment and enrollment research for the Division of Student Affairs at Iowa State University. He leads Iowa State’s Enrollment Research Team (ERT) conducting research on a variety of area from strategic recruitment, tuition policy, and student success. Wohlgemuth, along with the ERT, have presented regularly at AACRAO’s Strategic Enrollment Management conference. He has authored and coauthored more than 15 articles and book chapters. He earned his master’s and doctoral degrees in economics from Iowa State University, where his research examined the demand for higher education at the aggregate and individual levels. His has a bachelor’s degree in secondary math education from the University of Kansas and an associate’s degree from Hesston College.

References

BLS. See U.S. Bureau of Labor Statistics.

Bureau of Economic Analysis. Regional Economic Accounts (Series CA1-3). Suitland, MD: Author.

Common Fund. Higher Education Price Index. Wilton, CT: Author.

Snyder, T.D., and S.A. Dillow. 2012. Digest of Education Statistics 2011 (NCES 2012–001). Washington, D.C.: National Center for Education Statistics.

Snyder, T.D., and S.A. Dillow. 2013. Digest of Education Statistics 2012 (NCES 2014–015). Washington, D.C.: National Center for Education Statistics.

U.S. Bureau of Labor Statistics. n.d. Consumer Price Index. Washington, D.C.: Author.

Western Interstate Commission for Higher Education. 2012. Knocking at the College Door: Projections of High School Graduates. Boulder, CO: Author.

WICHE. See Western Interstate Commission for Higher Education.

Endnotes

  1. Panel datasets, those that vary over time and geography, can be analyzed effectively with OLS regression. As the enrollment research capacity becomes more sophisticated, additional models can be used to examine the panel dataset.
  2. It is suggested to use CPI for All Urban Consumers (CPI-U) 1982–84 = 100 (Unadjusted)—CUUR0000SA0.
  3. This analysis was done using the standard “Analysis Tool Pack” add-on in Microsoft Excel. There are many other programs, including STATA, SAS, and SPSS, to name a few.
  4. A discussion with a faculty member in the Economics Department may be helpful in developing a deeper understanding of the costs and benefits imposed under the linear and log-linear models relative to elasticities.
  5. See WICHE (2012).

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