The phenomenon of student dropout in higher education, both in Latin America and globally, has raised significant concerns. This issue affects institutions and states due to its high costs in terms of public and social policy. Despite the need to control dropout rates and associated losses, a lack of knowledge has hindered the adoption of effective strategies.
Dropout impacts not only at an individual level but also institutions and society at large, affecting productivity and the development of countries. The research emphasizes dropout as an inefficiency of the educational system, as the investment in students who leave cannot be recovered, affecting the quality of education.
In the context of high university fees in Chile, the research aims to analyze the costs associated with student dropout, understanding the resources that are not received. A methodology is used, including a literature review of the concept of dropout and the Chilean educational system. Results and conclusions are presented to contribute to a comprehensive understanding of this phenomenon and its implications.
The text highlights concerns about student dropout in global higher education, emphasizing its impact on institutions and society. The research aims to analyze the costs of dropout, particularly in the context of high university fees in Chile, contributing to a comprehensive understanding of this phenomenon.
Student dropout is a complex phenomenon with varying definitions, encompassing anything from temporary abandonment to the definitive disengagement from a program or institution. It is recognized as multi-causal, impacting academic, social, and economic dimensions. The research emphasizes the lack of a singular definition, leaving it to researchers to choose the approach that best aligns with their objectives. Internationally, differences in dropout rates are observed, with examples such as South Korea and Japan highlighting the influence of institutional factors and student learning experiences on retention. Finland’s experience underscores the importance of well-being and study skills as support for student retention. While local contexts identify personal, family, socio-economic, and institutional variables influencing dropout, more advanced countries implement targeted interventions based on precise diagnostics, considering cultural differences and available resources to address this issue with a long-term perspective.
Until 1980, higher education in Chile was primarily comprised of state-subsidized institutions, but after legislative changes, new forms of financing and types of institutions emerged. Currently, there are universities, professional institutes, and technical training centers, distinguishing between private universities and those belonging to the Council of Rectors of Chilean Universities (CRUCH), which includes state institutions.
State financing for higher education includes scholarships and loans, although the introduction of gratuity in 2016 exempts students from low-income families from paying fees at participating institutions. Despite the increase in enrollments, student dropout, exceeding 20%, poses a challenge to the education system and society. In the First-year Retention Report 2019, a retention rate of 78.9% is highlighted, with a 21.1% dropout rate for the 2018 cohort. Private institutions and state institutions show dropout rates of 23.1% and 20.3%, respectively. First-year dropout is a crucial international indicator for evaluating institutions’ effectiveness in student retention.
From an economic perspective, student dropout poses significant financial challenges for institutions, causing instability in their revenue sources. In Chile, it is estimated that dropout results in annual losses of around USD 780 million, according to UNESCO. A study at a Chilean state university calculates the cost of dropout to be USD 23 million, with 43.3% funded by the government through gratuity.
Dropout not only entails the loss of tuition and fees but also investments in teaching, infrastructure, and bibliographic resources, increasing the opportunity cost of education. Quantifying these costs is crucial, especially given the high tuition fees in Chilean universities.
Factors such as teaching quality, the relationship between teachers and students, the use of academic libraries, and institutional accreditation influence student retention. In summary, student dropout entails significant resource losses for students, society, and educational institutions, which allocate a substantial portion of their budget to programs aimed at retaining and graduating students.
During the years 2017-2018, higher education in Chile had 243,518 first-year enrollments, with 52.52% in CRUCH universities and 47.48% in private ones. State CRUCH universities had an enrollment rate of 29.05%, while traditional private ones reached 23.47%. In 2018, there was a 1.76% increase, driven by CRUCH universities. State universities represented 29.89%, and private ones, 23.50%. Private universities maintained 46.61% of the enrollments.
The research addresses student dropout in Chilean higher education, focusing on the 2017-2018 cohort. It analyzes the relationship between enrollment, dropout rates, and fees, noting that 18.96% of students left their studies in 2017, with significant variations between private and state universities. The economic impact of dropout is highlighted, estimating considerable resource losses for institutions and the government. The research emphasizes the need to understand and address this phenomenon to enhance the efficiency and quality of the education system.
Due to first-year student dropout, the Chilean education system would lose approximately USD 1,169,853,410 in tuition revenue. This research acknowledges that there are additional associated costs beyond tuition, although they were not considered in this study. The sample includes fifty-one Chilean universities, and a statistical analysis is proposed to determine the degree of correlation between institutional variables and the calculated cost of dropout.
This research focuses on the economic impact of first-year student dropout in Chilean universities for the cohorts of 2017-2018. It reveals that the Chilean higher education system loses approximately USD 1.17 billion in tuition fees due to student dropout, emphasizing that this figure doesn’t encompass other associated costs.
The findings underscore the widespread repercussions of student dropout on individuals, families, universities, and society, highlighting the need for a deeper economic understanding of this phenomenon to guide strategies for improving retention rates.
