LABOR MARKET EFFECTS ON ENROLLMENTS IN HIGHER EDUCATION

Abstract

The effects of economic conditions upon higher education enrollments between 1966 and 1978 are specified nationally, regionally, and for The University of Arizona. The study indicates that since 1973, about the time when studies began to report on the declining value of a college education, potential students became much more sensitive to the opportunity costs of college attendance. As job opportunities increased, foregone earnings grew correspondingly, and enrollments decreased. Economic reversals were accompanied by enrollment increases. The study provides a perspective for evaluating the relationship between higher education and the economy. As such, it has implications for institutional planning to help set tuition levels, to make enrollment projections, or to aid decisions regarding student aid, demand for faculty and staff, and fund-raising goals.