Category: Higher education

Why do university lobby groups under-sell their product?

Andrew Norton4 Comments

As expected, my Graduate Winners report generated plenty of controversy. Two of the university lobby groups put responses on their websites (Universities Australia here; Innovative Research Universities here). A couple of VCs added hyperbole to the sober complaints of their representative organisations:

Administrators and students alike have hit out, with Central Queensland University vice-chancellor Scott Bowman likening it to a “funding regime of which North Korea would be proud”.

Australian Catholic University vice-chancellor Greg Craven slammed the report’s focus on numbers while failing to recognise the wider community value of higher education. “This seems to be a calculator with a personality disorder,” Professor Craven said.

One common criticism was that Graduate Winners does not count every possible public benefit of higher education (though it has the most detailed empirical analysis of this issue yet published in Australia, it is true that not every public benefit claim was investigated). But you would struggle to realise from just reading the lobby group reaction that Graduate Winners also has generally very positive news about graduate prospects. The vast majority of graduates do well financially out of their degrees, and enjoy other non-financial benefits as well. And there was no criticism for not pursuing this issue further.

In other words, the VCs appear to think that total course cost increases of between $7,000 and $19,000 for most courses would have disastrous effects and must be loudly fought, but lifetime benefit, including financial gains from their services averaging hundreds of thousands of dollars, were not worth mentioning.

I think this one-sided reaction reflects the history of higher education in Australia, and mindsets that have not changed despite the underlying realities having substantially shifted.Read More »

Are low SES people more worried about fees than other people?

Andrew Norton7 Comments

My new Grattan report, Graduate Winners: Assessing the public and private benefits of higher education was released tonight (Canberra Times covering it already).

The basic argument is that given high private benefits, higher education will generally be produced with or without a tuition subsidy. Therefore we can start phasing down tuition subsidies. I suggest 50% over 4 years for most disciplines.

The usual reaction to such suggestions is that the low SES people in particular will be put off higher education. I report the contrary Australian evidence. There is interesting English evidence in this report. What the English have done is far more radical than anything I am suggesting. Except for the clinical and lab subjects, they haven’t cut 50% over 4 years. They have cut 100% over 1 year. Combined with some scope for overall funding increases for universities, some student charges will nearly triple.

For the school leaver group, overall demand dropped by one percentage point of the age cohort compared to 2011, or about 15,000 people (like Australia before 2012, the UK has a capped system with demand exceeding supply, so this will have no effect on the total number of students). Read More »

Which Labor education minister made the most difference for working class people?

Andrew Norton3 Comments

In education, nostalgia for the era of Gough goes on and on. This piece of it in The Age yesterday prompted several supportive letters today.

Access to higher education did expand under Gough, but his reforms was not as significant as many people imagine they were. Through a patchwork of scholarships and subsidies from both levels of government and from universities themselves, only a minority of students paid fees in the early 1970s. The average fee for those who did pay was $480, or $3,000-$4,000 in current dollars. Many also received financial assistance; Gough replaced this with a means-tested income support scheme TEAS, the predecessor of today’s Youth Allowance.

The clarity of what Whitlam did probably accounts in part for what people believe today. Though most bright school leavers who wanted to go to university would already have done so pre-Whitlam, the financial pathways were made much clearer by Whitlam’s reforms.

Overall, higher education enrolments expanded from 206,500 in 1972 to 287,700 in 1976 (first year of the Fraser government, but it came to power too late in 1975 to affect enrolments). Less than a third of the increase was in universities, with most new students going to the colleges of advanced education. Numbers had been growing steadily since the 1950s, so some of this growth would probably have occurred anyway.

A lack of consistent data makes it hard to tell exactly what opportunities Whitlam created for working class people. My reading of various sources is that the absolute number of working class students probably went up in the following years. But their proportion of total enrolments went down. The reason for this was simple. University entry usually requires school completion, and very few working class people did that. Therefore it was middle class people who were best placed to take advantage of expanded places in higher education.

The late 1980s and early 1990s were the turning point for improving working class higher education participation. School completion rates had increased dramatically during the 1980s, and the big HECS-financed John Dawkins led expansion in university places gave them somewhere to go. Dawkins and the most Labor state education ministers of the 1980s were more important than Whitlam in opening up education for people of all classes. Gillard is responsible for another wave of expansion since 2009, which also seems to be bringing in low SES students in large numbers.

Yet there is almost no nostalgia for Dawkins, and the state ministers are largely forgotten. Gillard’s time as PM will obscure her successful period as education minister. They all lack Gough’s charisma, and his simple message eloquently put.

Is the student amenities fee loan scheme constitutional?

Andrew Norton2 Comments

On the 7.30 current affairs program the other night, constitutional lawyer George Williams suggested that the Williams case High Court ruling might have implications for universities.

The case revolved around the constitutionality of the school chaplains program. Though reported in the past as about religion, the court in the end found for Williams on a ground concerning the executive power of the Commonwealth to act without legislation.

University funding does have a legislative basis. Its main constitutional backing is in section 51

(xxiiiA) the provision of maternity allowances, widows’ pensions, child endowment, unemployment, pharmaceutical, sickness and hospital benefits, medical and dental services (but not so as to authorize any form of civil conscription), benefits to students and family allowances; (emphasis added)

Three of the seven judges had something to say about what ‘benefits to students’ meant. Justice Kiefel said:

Social services provided to students might take the form of financial assistance, for example payment of fees and living and other allowances, or material assistance, such as the provision of books, computers and other necessary educational equipment, or the provision of services, such as additional tutoring. The term “benefits” in the context of s 51(xxiiiA) does not extend to every service which may be supportive of students at a personal level in the course of their education.

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Two views on prices

Andrew NortonLeave a comment

[Tertiary education minister] Senator Evans warned that fee deregulation would increase costs to students and threaten access.

“Increasing fees is what deregulation is about,” he said.

“It is about allowing the universities to charge more.

“We would see a reduction in participation as people were priced out of the market’.

– The Australian, 6 June 2012

Ms Gillard says she wants to tackle rising childcare costs, but does not think capping fees will work.

She says that would prevent centres raising their fees if their costs go up for legitimate reasons.

– ABC radio news, 7 June 2012

All government-subsidised undergraduate science students to pay more

Andrew Norton4 Comments

Rather surprisingly, last night’s budget was pain free for universities. But their students were not entirely spared. The previously announced decision to restore previous student contribution amounts for new science students was extended to include continuing science students.

While in my view the discount for science students should never have been offered, the change again highlights the problems caused by the instability of higher education policy, with constant introductions and withdrawals of incentive policies. DEST/DEEWR/DIISR incentive programs rely on the naivety of the punters to work, because anyone who observed this policy area over time would assume that incentive policies lack long-term credibility, and not change their behaviour.

(Of course prospective students are unlikely to follow this detail, so temporary discounts may work. Oddly, a couple of articles (here and here) in today’s budget coverage repeat the Ian Chubb/ government line on science – too little demand for science university places, too little supply of university places, and too few scientists. The evidence does not support any of these propositions. A 2012 report on university applications showed not only that for the third successive year science experienced very large increases in applications and offers, but that science was doing exceptionally well in the 90+ ATAR group. And the argument that we are short of science graduates is not evident in any employment survey.)

Bachelor degrees the science employment risk

Andrew Norton6 Comments

The Higher Education Supplement this morning ran an op-ed version of my critique of Ian Chubb’s promotion of science courses. About 60 words were cut from the original. Editors often have to shrink articles to the available space, but in this case an important source was omitted. The employment outcomes in the last few paragraphs are from the 2006 census, not the Beyond Graduation survey as the op-ed appears to say. An amended version of the op-ed is under the fold.

Those paragraphs were the only part of the article that I had not reported before. In the past, I have said that science graduates as a whole have about average rates of graduate employment in professional and managerial jobs. However, closer analysis tells a more interesting story. People with postgraduate science qualifications have above rates of professional and managerial employment. But people with bachelor-level qualifications have lower rates of such employment – males 5 percentage points below the male average, and women a massive 13 percentage points below the female average. That’s a pretty bad outcome, and one worth further investigation when the 2011 census is released later this year.

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The launch of My University

Andrew Norton2 Comments

The government’s My University website launched this morning.

Overall, I think it is a good start in giving students more information to help with their higher education choices. There is information by university and field of study on student satisfaction with teaching and generic skills development, attrition rates, employment rates, staff qualifications, student:staff ratios, and other things. The meaning of these numbers is often contested – the methodology section suggests caution on some matters – but overall it is better than general impressions or historical reputation.

Here is an example of how the information is presented, for Macquarie University business.

There is also information on general campus facilities. Here is an example for Murdoch University.

Some suggestions for future versions of the site:

* How to get to the course performance information is not intuitive. ‘Course search’ will provide a list of courses in the field of study of interest, but the comparison tool only gives ATARs and cost. The latter will be useful if fees are deregulated, but under the current system the student contributions will be much the same. To find course performance information, users have to go to ‘university search’, and then choose the field of study. Comparison between universities will be difficult without printing out results for each university.

* For non-university higher education providers (NUHEPs), their courses can be located through ‘course search’ but not ‘university search’. No information on admission requirements or cost was in any of the results from random searches. Nor is there any information on course performance, though some NUHEPs are in the relevant surveys (there may be sample size issues). To get a proper market, we need to include the NUHEPs as fully as possible.

The low employment relevance of science degrees

Andrew Norton7 Comments

Back in February, Chief Scientist Ian Chubb used a report (pdf) on science enrolments to promote the view that we are producing too few science graduates. I disputed that claim.

The recently released Beyond Graduation 2011 report (pdf), of graduates three years out, provides further reason to be very cautious about science boosterism.

One question in the survey asks employed graduates whether their qualification was a formal requirement, important, somewhat important or not important for their job. The figure below shows that after three years those with science degrees are only just saved by the creative arts from having the qualifications least likely to be a formal requirement or important for their holder’s job.

As the text points out, many graduates who rate their degree as not important are in managerial or professional jobs. So the lack of direct relevance may not be a problem from their point of view. But that so many science graduates find employment where a science degree is not required hardly suggests general shortages of science qualifications.

Should the government redistribute student fees between universities?

Andrew NortonLeave a comment

In an AFR op-ed today (not behind a paywall – things are improving), Macquarie Uni VC Steve Schwartz suggests some egalitarianism for universities.

If fees are deregulated, the more prestigious universities would charge higher fees than others. Schwartz suggests that if they did, their government subsidy should be reduced, and redistributed to other universities.

The reason is regulatory – the new Tertiary Education Quality and Standards Agency is imposing standards on all universities, but it is hard for the poorer universities to match the standards of the wealthier universities.

I doubt TEQSA will require all universities to be the same. A university licence to operate depends on meeting minimum standards, not being identical to all other universities. That said, there is a tendency in the standards released to date to codify common practices, some of which are of doubtful necessity. If this continues, the universities in the best financial position to try new things will tend to set the standards over the long term. Read More »