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Abstract The authors trace the origins of the key features of U.S. higher education today--the coexistence of small liberal arts colleges and large research universities; the substantial share of enrollment in the public sector; and varying levels of support provided by the states. These features began to materialize soon after 1890 when the ‘knowledge industry’ was subjected to ‘technological shocks’ that increased the value of research to industry and government and led to the proliferation of academic disciplines. The consequence was an increase in the scale and scope of institutions of higher education and a relative expansion of public-sector institutions.
Journal of Economic Perspectives – American Economic Association
Published: Feb 1, 1999
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