Administrative Bloat at American Universities: The Real Reason for High Costs in Higher Education

Jay P. Greene
Goldwater Institute Policy Report
August 17, 2010

Executive Summary

Enrollment at America’s leading universities has been increasing dramatically, rising nearly 15 percent between 1993 and 2007. But unlike almost every other growing industry, higher education has not become more efficient. Instead, universities now have more administrative employees and spend more on administration to educate each student. In short, universities are suffering from “administrative bloat,” expanding the resources devoted to administration significantly faster than spending on instruction, research and service.