The Economics of American Higher Education.

• Author: Rose, David C.

This book is a collection of papers that examine the role of higher education in economic development in the U.S. Since the editors examine macroeconomic development in a related book, American Higher Education and National Growth, the papers included in this volume focus on microeconomic issues.

The book begins with a preview chapter written by the editors. In addition to outlining the remainder of the book, the editors give a brief and accurate summary of the difficulties facing higher education. The remainder of the book is divided into four sections: "The Missions of Higher Education," "Higher Education as Personal Investment and Advancement," "Higher Education and Regional Growth," and "Higher Education as Social Investment for Equity."

The first section, "The Missions of American Higher Education," contains two papers. The first, by James C. Hearn, addresses what he claims is an emerging paradox in American higher education. This paradox is between popular perception and organizational reality: the public continues to believe that teaching is the cornerstone of American higher education while in reality teaching is being degraded by an increasing emphasis on research. Hearn's article is scholarship at its finest and is enough to make the book worth owning. This reviewer can think of no better place to start a serious self examination in academe of what constitutes an appropriate balance between teaching and research. The second paper in this section is by G. Edward Schuh and Vernon W. Ruttan. This paper traces the history and evolution of the research and service missions of American institutions of higher learning. As an interesting point of departure, the authors characterize the research and service missions of institutions of higher learning as parts of the human capital production process. The other highlight of the paper is the convincing rationale they offer for the need for social science research. In short, the authors argue that the demand for social science research is derived primarily from a demand for institutional change and improvements in institutional performance.

The second section, "Higher Education as Personal Investment and Advancement," begins with a paper by William E. Becker. This paper gives a thorough and refreshingly candid overview of the methodological issues facing anyone who wishes to estimate the value of college degree. The paper also addresses the well-known (and now largely discredited) thesis of...