Tuition and fees of Japanese private universities have increased faster than consumer prices. This means that the costs of higher education have become a heavier burden on the household budget. Despite this fact, there is very little research in Japan on the tuition and fees of private universities. This paper aims to reveal the actual situation and the determinants of tuition and fees of private universities in Japan, through comparison with the tuition and fees of colleges and universities in the United States, and private high schools in Japan.
It is well-known that tuition and fees of Japanese private universities differ significantly depending on the faculty. In addition, we can see that tuition and fees can vary even among faculties in the same area of study. To analyze what causes tuition and fees to differ among such faculties, I used data obtained from the faculties of economics, business, commerce, and engineering of private universities in the Tokyo area. Analysis indicates that universities with better conditions and higher selectivity tend to have lower tuition and fees. This tendency, which is particularly notable at private universities in Japan, is different from private colleges and universities in the United States and private high schools in Tokyo.
The factors behind the odd phenomenon in which universities with better conditions and higher selectivity have lower tuition and fees can be explained in terms of supply and demand. Nevertheless, we should also consider that the market of higher education is segmented according to selectivity, and as a result, tuition and fees of universities which are less selective are increasing. The increase in tuition and fees of universities which are less selective may seriously affect household budgets in the process of universalization of higher education.
