Economics at your fingertips  

Build It and will They Come?: The Effect of Investing in Cultural Consumption Amenities in Higher Education on Student-Level Outcomes

Siân Mughan (), Jessica Sherrod Hale () and Joanna Woronkowicz ()
Additional contact information
Siân Mughan: Arizona State University
Jessica Sherrod Hale: Indiana University Bloomington
Joanna Woronkowicz: Indiana University Bloomington

Research in Higher Education, 2022, vol. 63, issue 1, No 3, 60-91

Abstract: Abstract Despite a climate of fiscal scarcity, higher education institutions are making big investments in campus consumption amenities while reducing instructional expenditures and growing increasingly reliant on tuition revenue. Few empirical studies exist exploring why universities increasingly invest in these amenities; however, one compelling explanation is that in an increasingly competitive market universities use amenities as a means of attracting students. Using resource dependency theory, this article examines these investments through the lens of marketization of public services. A unique dataset of HEI investments in cultural consumption amenities from 2000 to 2016 is used to estimate the effect of investing in cultural consumption amenities on various student-level outcomes. The evidence suggests that consumption amenities investments are associated with an increase in the yield rate (the proportion of admitted students who choose to enroll in the institution) and a decrease in the percentage of students paying in-state tuition. Also, higher-value investments are associated with a modest increase in out-of-state tuition, a decrease in in-state and out-of-state fees, and an increase in SAT scores. Taken together, the findings suggest that cultural consumption amenities investments may help attract more lucrative students and students who are strongly considering enrolling (as indicated by their application).

Keywords: Amenities; Student choice; The arts; Tuition (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1007/s11162-021-09640-0

Access Statistics for this article

Research in Higher Education is currently edited by Robert K. Toutkoushian

More articles in Research in Higher Education from Springer, Association for Institutional Research
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-05-12
Handle: RePEc:spr:reihed:v:63:y:2022:i:1:d:10.1007_s11162-021-09640-0