The $70,000-a-Year Liberal Arts College Just Won’t Die

According to the College Board based on NCES statistics, average faculty salaries at private nonprofit bachelor’s colleges (which would include LACs) increased by only 5% in real inflation-adjusted dollars between 2001-02 and 2016-17, and were essentially flat at research universities. So if colleges are spending more for faculty, it’s either because they’re employing more faculty relative to enrollment, or because non-salary benefits (e.g., health insurance) are taking a bigger bite. It’s been well documented elsewhere that the biggest growth in payroll costs has been in non-faculty administrative and support staff. And much of this has come about in response to consumer demand. Colleges are engaged in a kind of arms race to see which can provide the most deluxe suite of support services and outside-the-classroom bells and whistles, all of which require staff and facilities. Technology’s expensive and requires near-constant upgrades, and students are attracted to schools that offer the plushest dorms, the best food, and the nicest facilities. It’s not faculty salaries that are driving this runaway train.

https://trends.collegeboard.org/college-pricing/figures-tables/average-faculty-salary-sector-over-time