Student dropout, the economic cost for Chilean universities

Abstract

Student dropout continues to be a significant challenge in higher education. Studies have shown that it has economic impacts on institutions. However, the cost associated with student dropout needs to be better understood. This research focuses on first-year dropouts in 51 Chilean universities, intending to analyze the costs generated by student dropouts in all their careers, allowing to project in an average horizon the resources that would no longer be received as a result of dropouts. It is descriptive research with a documentary analysis technique. Among the most outstanding results, it is shown that the institutions would lose around USD 1,169,853,410 and that private universities are the ones that register a higher cost associated with first-year university dropouts. On the other hand, it is statistically proven that for those universities that register a higher number of enrollments, the cost associated with dropout will be higher.