Comments due by Feb, 22, 2015
Online learning has been viewed as the disruptive innovation in higher education today, with traditional classroom instruction at risk of being replaced by superstar professors teaching elabourate courses developed by teams – or by Massive Open Online Courses (MOOCs) offering instruction to students worldwide (see, e.g., Christensen and Eyring 2011, Cowen and Tabarrok 2014). Even if they do not revolutionise higher education, online courses are a potentially important source of cost savings in higher education, with the primary channel being reduced labour costs through larger class size and less face-to-face interaction (Bowen 2012).
The potential for disruption can be seen in the tremendous recent growth in the granting of online bachelor’s degrees – 2012 saw 23 large for-profit online campuses award nearly 75,000 bachelor’s degrees in the United States, more than 5% of the total and nearly twenty times as many online bachelor’s degrees as were granted just a decade before. Although the growth of online education has until recently occurred mostly in the for-profit sector, public institutions are increasingly competing for students online – perhaps in response to cost pressures (Hoxby 2014).
What do we know about the performance of online education thus far? Scholars have been stymied in evaluating online education because:
- Data on the granting of online degrees has been limited, and
- Comparing the outcomes of students enrolled in online programs with those of students in traditional programs is plagued by differences between online and traditional students other than their degrees.
In two recent papers we have begun to fill the gap in our knowledge, collecting evidence on both the cost savings of online education, and employers’ perceptions of the quality of online degrees (Deming et al. 2014, 2015).
The most basic question about online programs is whether they can actually reduce the cost of tertiary education. To answer this question, we use data from the Integrated Postsecondary Education Data System (IPEDS) of the U.S. Department of Education to examine the relationship between a school’s tuition (and fees) and the fraction of students enrolled in an online program (Deming et al. 2015). We find evidence that there are modestly lower prices charged at schools at which more students are enrolled online. A 10% increase in the fraction of students enrolled online is associated with roughly a 1.4% reduction in tuition. We also find that from 2006 to 2013, the price of a full-time undergraduate online education (among private non-profit and for-profit schools) declined by 34%. For comparison, over the same period, the price of a traditional education at a large for-profit or private non-profit school dropped by about 8%, and tuition at all non-selective four-year public institutions increased by 9.2%.
Thus, we find some evidence that colleges are charging lower prices for online coursework, suggesting that advances in online learning technology might be able to ‘bend the cost curve’ in higher education.
This finding raises another question: does the quality of education suffer when content is delivered online? An initial randomised trial of a college statistics course found no difference in student achievement in online versus in-person course sections (Bowen et al. 2014). But two recent studies have found negative impacts of switching from in-person to online instruction on course final grades in an introductory economics class (Alpert et al. 2014, Joyce et al. 2014).
One would also like to know how employers view online degrees compared with traditional degrees. An important challenge in any study of labour market outcomes associated with the degree an individual acquires is that individuals select into their degree programs (or are selected into them) based on a range of characteristics that might also determine labour market outcomes. It may not be possible to control for these differences to the extent that they are not observable to the researcher.
To learn how employers view online degrees – while holding other characteristics of applicants constant – we recently conducted a ‘resume audit experiment’ in which we submitted more than 10,000 ‘synthetic’ (fictional, but very realistic) resumes to real job openings, with the type of degree randomly assigned across otherwise identical resumes (Deming et al. 2014). This setup allows us to isolate the effect of just the degree on employers’ likelihood of calling an applicant back.
We find that for business job vacancies (the largest group of job postings) that require a bachelor’s degree, employers strongly prefer applicants with degrees from (nonselective or selective) public institutions as opposed to applicants with degrees from for-profits. The biggest callback ‘penalty’ is imposed on the applicants with an online for-profit degree. Callback rates were 8.5% for the resumes with (randomly assigned) nonselective or selective public institution bachelor degrees and around 7.8% for ‘brick and mortar’ for-profits. But they were only around 6.3% for the online for-profits. Thus callback rates were 26% lower for the online for-profits than for the publics (22% in the regression-adjusted figures).
Overall our findings suggest that online education is indeed a technological advance that can succeed in cutting the costs of a college degree. But preliminary evidence suggests that – at least for the time being – the new technology comes at a cost of quality: it does not produce a product perceived by employers to be as good as one from the traditional, more expensive mode of production.
References
Alpert, W T, Kenneth A. Couch, and Oskar R. Harmon (2014). “Online, Blended and Classroom Teaching of Economics Principles: A Randomized Experiment.” Working paper, University of Connecticut, Stamford.
Bowen, William G. (2012). “The ‘Cost Disease’ in Higher Education: Is Technology the Answer.” The Tanner Lectures, Stanford University.
Bowen, William G., Matthew M. Chingos, Kelly A. Lack, and Thomas I. Nygren (2014). “Interactive Learning Online at Public Universities: Evidence from a Six-Campus Randomized Trial,” Journal of Policy Analysis and Management, 33(1), pp. 94-111
Christensen, Clayton M., and Henry J. Eyring (2011). The Innovative University: Changing the DNA of Higher Education from the Inside Out, New York, NY: John Wiley & Sons.
Cowen, Tyler, and Alex Tabarrok (2014). “The Industrial Organization of Online Education.” The American Economic Review, 104 (5), pp. 519-22.
Deming, David J., Claudia Goldin, Lawrence F. Katz, and Noam Yuchtman (2015). “Can Online Learning Bend the Higher Education Cost Curve?" National Bureau of Economic Research Working Paper 20890.
Deming, David J., Noam Yuchtman, Amira Abulafi, Claudia Goldin, and Lawrence F. Katz (2014). “The Value of Postsecondary Credentials in the Labour Market: An Experimental Study." National Bureau of Economic Research Working Paper No. 20528.
Hoxby, Caroline M. (2014). “The Economics of Online Postsecondary Education: MOOCs, Nonselective Education, and Highly Selective Education.” The American Economic Review 104(5), pp. 528-33.
Joyce, Theodore J., Sean Crockett, David A. Jaeger, Onur Altindag, and Stephen D. O’Connell (2014). “Does Classroom Time Matter? A Randomized Field Experiment of Hybrid and Traditional Lecture Formats in Economics.” National Bureau of Economic Research Working Paper 20006.
17 comments:
Online class have started to gain popularity during this current day and age but are they really helpful to students and their futures. As a student when you think of online classes you envision an easy A where you can use your notes and take the class at your own convenience. Online classes are most of the time cheaper than taking a class in person with a teacher, so as a student the thought of online class should bring some ease to your mind. Over the past decade we are seeing a lot of for profit “companies” appearing that offer online bachelor degrees but are you getting anything out of your investment.
This article shows how online class almost do more harm than good for student when it comes to getting a job with the degree you just invested all your time and money to get. The study showed that employers are less likely to call you back for a job if you have a online degree. I agree with this study I think and feel that online degree should be viewed inferior to degree that are earned at an institution where you go to class and are instructed by professional. When taking an online class are you really learning and retaining the information when you can use your notebook and the internet as much as you like. Online course can be helpful for students who are trying to get extra credit or take a basic class but I see online degrees as a useless piece of paper and agree with the article as it like the quality that a traditional education offers.
I agree with much of the content within the article. I don't know anyone who has received a degree from an entirely online curriculum. I am aware of students at Pace who took a few online classes to fulfill requirements. I am one of those students. One can certainly benefit from and come to enjoy an online class. It all depends on how interesting the subject matter is to you; and how much work you are willing to put in. From an economic standpoint, online courses are the most cost-effective form of education. However, the question lies in the credibility of an online degree. It makes sense that employers prefer applicants with traditional degrees, but that doesn't mean the online ones are meaningless. I think anyone who invested the time for education should be given a fair chance. The recent online course I took was writing enhanced, which gave me the chance to hone in on my wordplay. I received an A, but it was a mark not easily earned. I still had to spend a good amount of time engaged in the online course.
When I think of online classes, I immediately cringe. This is my third year in college and over these three years I have only taken one online class and will never take another. Some may think online classes are an easy A or are easier than going to school and sitting in a class for two hours, but I disagree. I believe that you will learn more information by sitting in a class than you would if you were taking an online class. With online classes you can become distracted easily by people or technology around you and it will keep you away from your work.
“The new technology comes at a cost of quality: it does not produce a product perceived by employers to be as good as one from the traditional, more expensive mode of production.” I agree with employers going after people who have received a traditional in-class education. I believe that these students who are sitting in class learning will receive a better education and will be able to get face time with a teacher who can help them learn the material better. With this face time and interaction with other students and teachers, I think it will also help make these students better candidates for jobs and be able to interact with a variety of different people that they may encounter in their “real world jobs."
Although people benefit from the lower costs of online learning, it does not meet the right academic standards. I had taken an online course and for me it was the hardest course I had taken. I had to work on my time management skills and organizational skills. We never met with a professor we had to rely on ourselves to go online and check for work. This does enhance our skills and make the costs lower, but the quality of your learning decreases. There is nothing like learning in a classroom at a desk. if two people were at a job interview, both having the same skills and necessary, the one with the traditional degree would get the job. The quality of the academics in the classroom is just much better. It is very cost effective, but in the long wrong it is only hurting the student.
Over the past few years online courses have become more prevalent as technology continues to become more user friendly. Online courses definitely do have their own benefits, the major one being cost, since students spend less, but as the article stated, most companies still prefer applicants with a traditional degree as opposed to an online degree.
An online degree is regarded as worse quality compared to a traditional degree since a tradition degree indicates that someone put in the time and effort to complete the course. While doing an online course one can easily get distracted as there are infinite things to do on the internet.
Getting a traditional degree also requires the students to go to class which gives them opportunities to interact with their fellow peers and the teacher and overtime this could naturally make them better candidates according to employers.
This article discusses the recent growth in online learning within the past few years - over 75000 bachelor degrees are being granted annually which totals over 5% more bachelor degrees being issued. I can understand the draw of an online degree due to the low cost and the flexibility of doing it on your own time, but I believe that the student looses in the long run as you do not have the benefit of classroom learning. In addition I believe that online learning gives students ample leeway to cheat, both during the lessons and on tests. Don't get me wrong I believe that online learning can be beneficial in the right circumstances. For example, online video tutorial systems to teach you how to use computer programs or how to accomplish a specific task within a program are beneficial. However, for complex subjects I do not believe a student can become engaged enough in the course if they are trying to complete it through the Internet.
I also think that it is interesting that the results In the sampling done in this article show employers prefer those that have a degree from a public institution rather than a for profit. This shows that employers look at degrees received online as having a lesser value than those obtained within the classroom.
Online education has been a hot discussion topic especially over the past few years. Over 75,000 bachelor degrees from online campuses are being granted annually. Online courses have a major benefit that many people hold dear to their hearts, less costly. In general, paying for online education is much less financially stressing than a traditional education. Larger class sizes and less face-to-face interaction between professor and student are the primary reasons of the reduction in labor costs. Despite the higher cost, traditional education is argued to be more beneficial than online education by many. Showing up to a campus means you have face-to-face time with a professor which will allow for questions to be asked and class discussion on a specific topic. You are surrounded by people who are there to do the same thing you are which may make the difficult times a little easier. In a perfect world, both types of education would lead to the same outcome of a successful career. However, this world is anything but. Some may argue that main idea behind earning a degree is to educate yourself, yes, but more importantly, to please your employer so they know that you are qualified enough for the position you are after. Many wonder if an employer will treat an applicant with an online degree the same way as an applicant with a traditional degree. To see what will happen, 10,000 “synthetic” resumes were sent to real job openings that were practically identical. The only thing that was changed was where the degree was earned. After all was said and done, callback rates for online for-profit degrees were 26% lower than it they were for traditional public degrees. This shows that despite the immediate benefits of having to pay less for an education online, digging a little deeper in your pocket for a traditional degree might be the way to go.
Online courses and degrees have become a much more popular in modern society due to the more reasonable cost and ability to earn a degree from home. I personally feel as though even though technology has enabled our society to be able to successfully take courses online, the “class room” experience much more beneficial than taking a course online. The article even states that companies are more interested in hiring individuals who have obtained their degree in a university rather than online. Taking courses in a university rather than online enables one to learn things that they wouldn’t otherwise online and even enable them to make connections with others that could benefit them in the future. Overall even though an online degree can be beneficial to many, a traditional degree is far more valuable.
This article is about online classes and the employer's stance on online degrees. The job market's attitude is not good for people who have online degrees. I tend to agree with the employer's view about the quality of the online degree. A online course is a great way to get cheap credits and are very convenience to the student. With that being said, it is very easy to get a good grade in a online class. You can use your notes on exams or have somebody else take the test for you. The overview of what I am trying to say is that an online course is a good tool to aid in getting a degree but should not be the only source of education for a degree.
Over the past few years online course have increased tremendously due to the fact that it cheaper than a regular course. Also, because it can take the course at your own pace and convenience. The article now talks about how online class degrees and regular classes are totally different and how it views it. It states, “Comparing the outcomes of students enrolled in online programs with those of students in traditional programs is plagued by differences between online and traditional students other than their degrees.” In my opinion, I have to agree there are a huge difference in the quality a regular education and a online education.
Online classes can be productive if used wisely. I think that getting a degree completely online leaves you with less experience than those who physically attend class. In my experience online classes are not easier, as they require more time and if you have a problem or question sometimes it is difficult to get in touch with the professor. Although online classes can help improve a students understanding of the internet and computer based programs, they can lose touch with other things that help make a potential employee a candidate for the job.
I don’t believe that online learning should be viewed as a “disruptive innovation” in higher education; although it is not face-to-face contact it still has its advantages or benefits for those who necessarily dislike large class lecture sizes. It is also definitely a source of money saving for those who may not be able to afford to attend community colleges or universities. Taking online course to obtain different degrees is indeed a technological advancement, however, some employers may view obtaining a degree online isn’t the same as the traditional attending school to get one. I personally believe there may be differences between taking an online course and sitting in a classroom with a teacher, but there are also similarities at the same time because both require hard work, dedication, and the diligence to actually sit down and learn the material. You’re still gaining the same amount of knowledge on the subjects you’re taking online as the others who’ve decided to take the courses within a classroom. Nowadays you’ll have certain amount of people who took the opportunity to receive their degree online rather than attending a college or university and that should be acceptable. People who chose to take courses online to receive a degree should not have their degree deprived or depreciated because they’re putting in the same amount of work as everyone else who too is working towards the same degree.
I am aware of many people who take online courses, but i have never taken one. I believe they could help many students if they are comfertable learning that way and i also belive it could help many students get degrees. Like the article said i have never met anybody who has earned a degree completely online but it is definetly a possibility. Also as some others commented online classes are usually cheaper which could help more people get degrees.
I definetly think that technology in learning is an advancement. But when it comes to online classes, I don't know how I feel about that. I don't really see online classes or even online college being the same quality as a real college. The reason I say this is because I think students would be able to learn more actually sitting in a class and listening to the professor whereas online you could easily get distracted. I have never taken any online courses, but I can see why people would want to take them. They are simply more convenient for people. Especially online college because there is typically no commute involved and would leave them time to work or any other priorities. These types of online classes help more people get diplomas because it is more convient and almost always cheaper than going to an actual college. I don't think it should be looked at as a disruption in education because it definetly is not. Technology really helps in education and I think it all depends on the class or school you have to determine the quality.
I strongly disagree with the idea of taking on higher education through online. The quality of education suffers dramatically with online content for classes. While it seems to be more convenient, nothing can beat a professor’s ability to teach students. Statistics indicate that switching from in-person to online courses negatively impacted student’s grades. Although the price of online classes is cheaper, it is not worth it if you are not getting the full quality. It’s best to save the extra amount for a real education which includes human interaction; an environment that contains a living instructor, not a computer screen. Doing courses at home online can lead to countless distractions from work, causing a decline in academic performance.
Online classes have become more and more popular over the past years due to that fact that they tend to be cheaper and can potentially be less time consuming than a class that you must physically sit and attend. When I took an online class this past intersession I was surprised when it didn't start until January 5 and ended on the 20th. A little over two weeks to learn an entire course, which means basically an assignment a day for two weeks and barley retaining info. Although there was a heavy workload it wasn't a class I thought I learned everything I should have because of the length. I am aware that not all online classes are given in a short span of time but from experience i don't think i will ever take an online class again. I believe that taking all online classes to get a degree leaves you with less experience than those who physically attend class.
Online learning has taken so many strides that one cannot deny how much it is contributing to our education system. It has allowed our homework submission easier, provision of extensive information through databases such cq database is significantly increasing our learning. I come from a country where we still have to submit our researchs, assignments, homeworks the regular way but here in US, its so much convenient just to submit everything online. Youtube, scribd, studyblue have enriched the learning process and new simulations have only added more clarity to the learning process. Though the use of social media can be a bit distracting some time, online learning is still more rewarding oof used in the right manner
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