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A Response to Massification: Reaching New Students, Creating Capacity in the
Market, and Building Educational Institutions
Jonathan D. MathisProvost Fellow
University of Southern CaliforniaCenter for Higher Education
Policy Analysis
Presentation Outline• What is “massification”?• Massification in Practice
• Students• Market Capacity• Institutions
• How do we support the development of a knowledge-based economy?
• Publicly-traded Institutions• Role of Philanthropy
• Implications
What is “massification”?• Majority of society is expected to participate in
postsecondary education, including certificate, associate, baccalaureate, and graduate degree programs (Teichler, 1998)
• An increase in the number and diversity of institutions contributing to the development of active participants in a knowledge-based economy
• Seen as the result of accessible student financial aid, growth in college-aged student population, and increased corporate demands (Geiger, 2002)
Massification in Practice
Massification in Practice: Students
“…[I]n the past, college attendance was reserved mostly for the children of upper-class, well-educated families, [but] increases in the number and variety of institutions and the availability of aid programs…now make the option to attend college available to an increasing number of different types of students” (Burleson, 2010)
Massification in Practice: Students
Number of Bachelor’s Degree Recipients (per 100 persons)
Country 2004 2005 2006
Australia 46.9 59.9 59.6
Brazil 15.6 17.5 21.3
Denmark 49.9 52.9 50.3
Finland 54.7 53.8 57.3
Iceland 50.5 56.3 62.8
United States 33.2 34.2 35.5
OECD Average 34.3 36.3 37.8
Massification in Practice: Students
Percentage of Population Enrolled in Secondary Education (2006)
Country 16 years old 17 years old
Australia 94% 80%
Brazil 86% 82%
Denmark 91% 84%
Finland 96% 96%
Iceland 94% 84%
United States 93% 82%
Massification in Practice: Students
Country 18-21 Years Old
22 to 25 Years Old
26 to 29 Years Old
Australia 2005- 34%2006- 33%
2005- 21%2006- 21%
2005- 10%2006- 10%
Brazil 2005- 10%2006- 10%
2005- 9%2006- 10%
2005- 5%2006- 5%
Denmark 2005- 10%2006- 11%
2005- 34%2006- 34%
2005- 20%2006- 20%
Finland 2005- 24%2006- 24%
2005- 40%2006- 40%
2005- 20%2006- 21%
Iceland 2005- 12%2006- 12%
2005- 28%2006- 28%
2005- 16%2006- 16%
United States
2005- 45%2006- 46%
2005- 23%2006- 22%
2005- 11%2006- 11%
Percentage of Population Enrolled in Postsecondary Education
Massification in Practice: Market Capacity• Traditional universities cannot meet the demand of
massification due to the following constraints:• Physical space (campus capacity for growth)• Logistics (time and scheduling)• Instructional demands (faculty hires; tenure-tracks)• Costs• Capital Improvement
• Non-traditional students are now able to consider public, private, and for-profit postsecondary institutions
• Enrollment decisions might now include greater emphasis on desired collegiate experience, professional needs, and fit
Massification in Practice: Market Capacity
United StatesInstitution Type
2006-2007 Revenue (in millions)
Gifts, grants, contracts
(in millions)
Revenue per FTE Student(in dollars)
Expenses per FTE Student(in dollars)
Public Institutions(1,685 institutions)
$268,556 $5,589 2005-2006:$27,8892006-2007:$29,306
2005-2006:$25,6672006-2007:$26,062
Private, Not-For-Profit, Institutions(1,624 institutions)
$182,381 $20,193 2005-2006:$55,8592006-2007:$63,868
2005-2006:$42,7212006-2007:$43,619
For-Profit Institutions(1,043 institutions)
$13,978 $4 2005-2006:$14,8702006-2007:$15,364
2005-2006:$12,0612006-2007:$13,357
Massification in Practice: Institutions
Laureate Education, Inc.
45 accredited campus-based/ online universities; over 130 programs; nearly 500,000 students
The Open University
13 UK National and regional campus plus on-line options; 60 degree programs; over 250,000 students
Massification in Practice: Institutions
Capella Education Company
• 22 undergraduate and graduate programs; 111 specializations; nearly 27,000 students from United States & 52 countries
• Revenue: $272.3 million
(2008 Annual Report)• 45% Ethnic Minority
Students
Apollo Group, Inc. • Over 100 degree
programs ranging from undergraduate to graduate; 443,000 students; increasing international presence
• Revenue: $4.0 Billion (2009 Annual Report)• 48% Ethnic Minority
Students
How do we support the development of a knowledge-
based economy?• Publicly Traded Institutions (Stock market values as of
March 19, 2010)
– Apollo Group (NASDAQ:APOL): $64.37– Capella Education Company (NASDAQ:CPLA): $ 90.10
• Philanthropy• Joint Ventures and Collaborative Efforts• Government/National Policy
Implications• In responding to massification, entrepreneurs
and institutions consider the following interrelated factors informing the global postsecondary education market:– The rising middle class– Growing populations of school-aged youth– Human capital needs to service economies– Education as a lifelong pursuit– Governments unable to fully fund public universities
(Laureate Education, Inc.)
• Entrepreneurial efforts become instrumental in developing funding streams and joint ventures/collaborative degree programs among institutions
Center for Higher Education Policy Analysis
Rossier School of Education, WPH 701University of Southern California
Los Angeles, CA 90089-4037(213) 740-7218
www.usc.edu/dept/chepa