Economics of Education Review | 2019
Better outcomes without increased costs? Effects of Georgia’s University System consolidations
Abstract
Abstract Declining state appropriations for higher education have prompted consolidations within numerous public university systems. Using administrative data from the University System of Georgia, I investigate the effects of recent consolidations on educational quality and efficiency. Comparing cohorts matriculating after consolidations to similar cohorts at non-consolidated institutions reveals that consolidation increases retention rates and the fraction of students graduating on-time with four-year degrees. Spending data and conversations with USG administrators suggest that increased spending on academic support (advising), made possible by economies of scale in student services, are likely responsible for the gains.