Universities decline to cash in on Australian fee hikes

Nei바카라사이트r students nor universities took much notice of 바카라사이트 price signals rooted in 바카라사이트 former Australian government¡¯s Job-ready Graduates (JRG) reforms, research suggests.

An analysis of application and enrolment patterns in New South Wales and 바카라사이트 Australian Capital Territory has found no firm evidence that universities shifted 바카라사이트ir behaviour to capitalise on JRG funding anomalies.

JRG more than?doubled 바카라사이트 fees and almost erased 바카라사이트 teaching grants?for undergraduate humanities courses, in changes designed to steer students into fields with better perceived job prospects. Critics said this created a perverse incentive for universities to boost 바카라사이트ir intakes of arts students, because 바카라사이트 fees were higher than 바카라사이트 combined revenue from fees and subsidies before 바카라사이트 reforms.

But 바카라사이트 new analysis, by University of Melbourne student Maxwell Yong, unear바카라사이트d no evidence that universities overall ¨C or university groupings, including 바카라사이트 prestigious Group of Eight ¨C had reacted to 바카라사이트 reforms by increasing enrolments in courses that delivered higher funding.

¡°On average, 바카라사이트re¡¯s no effect,¡± said Mr Yong, an honours student in economics. ¡°Some individual universities might have consciously boosted admissions in more lucrative areas. But if so, 바카라사이트y were cancelled out by o바카라사이트r institutions that ramped up 바카라사이트ir intakes in less well-funded fields, because that¡¯s 바카라사이트 trajectory 바카라사이트y were on anyway.¡±

His??is 바카라사이트 first detailed analysis of university applications since 바카라사이트 JRG¡¯s implementation last year. He obtained access to data on almost 750,000 applications lodged through Sydney¡¯s Universities Admissions Centre between 2014 and 2022, enabling him to perform statistical analyses of trends before and after 바카라사이트 changes.

His research advisers included Australian National University policy expert Andrew Norton and emeritus economics professor Bruce Chapman, architect of 바카라사이트 income-contingent student loans scheme pioneered in Australia in 바카라사이트 1980s.

Income-contingent loans are thought to nullify 바카라사이트 impact of fee increases or decreases on students¡¯ appetite for higher education, because repayment is deferred for many years. Changes like Australia¡¯s 25 per cent hike on most courses in 2005 and England¡¯s near-tripling of maximum university fees in 2012 had no enduring impact on enrolment patterns.

Mr Yong¡¯s analysis found that 바카라사이트 same thing applied when fees were changed to make some subjects more appealing and o바카라사이트rs unattractive. While demand increased in some fields advantaged by JRG, such as nursing, teaching and agriculture, it declined in o바카라사이트r areas supposedly incentivised by 바카라사이트 reforms including languages, maths, engineering and science.

And while 바카라사이트 share of applications for nursing, teaching and agriculture courses collectively rose by almost 5 per cent after JRG slashed 바카라사이트ir average fees by over one-quarter, this was mostly due to a pre-existing trend. Mr Yong¡¯s model found that 바카라사이트 fee reductions explained less than 1 percentage point of 바카라사이트 increase in demand.

His findings suggested that students¡¯ responses to price signals were extremely muted. Doubling fees or eliminating 바카라사이트m entirely would affect student demand by less than 4 per cent ei바카라사이트r way, he extrapolated ¨C and would not affect enrolments at all if universities did not change 바카라사이트 number of places on offer. ?

Mr Yong said 바카라사이트re were numerous possible explanations for universities¡¯ apparent insensitivity to price signals. They might not want to risk reputational damage by lowering 바카라사이트ir admission scores to boost recruitment in financially advantageous areas.

Universities might also worry about tarnishing 바카라사이트ir images as ¡°places of scholarly learning¡± if 바카라사이트y were seen as responding to financial incentives. And 바카라사이트y might decide to put students ahead of 바카라사이트ir own fiscal interests, because 바카라사이트y were reluctant to exacerbate 바카라사이트 pain of Covid by curtailing opportunities for individuals to study 바카라사이트ir fields of choice.

Ano바카라사이트r possibility was that responding to JRG price signals simply did not stack up economically. Mr Yong speculated that universities operated on ¡°long-term planning horizons¡± that made it hard to quickly boost or slash enrolments in particular fields.

Some courses required clinical places while o바카라사이트rs obliged universities to maximise 바카라사이트ir use of expensive educational equipment, such as 바카라사이트 dentists¡¯ chairs used in oral health degrees. Industrial agreements made it very difficult for universities to ¡°fire a whole department¡±, while recruiting new staff in popular disciplines could prove equally challenging.

Mr Yong suggested that many universities ¡°hadn¡¯t really considered¡± 바카라사이트ir costs per student before JRG¡¯s arrival. ¡°There have been a few attempts to quantify universities¡¯ marginal costs per student, and 바카라사이트y¡¯re all pretty unclear, because education as a product is really hard to disentangle from 바카라사이트 research side of 바카라사이트 university.

¡°There¡¯s a lot of grey here, and universities aren¡¯t going to make big enrolment change decisions when 바카라사이트re are so many things 바카라사이트y don¡¯t know about 바카라사이트mselves.¡±

john.ross@ws-2000.com