College Tuition Increases and Faculty Salaries
The chart above shows annual price indexes for college tuition, faculty salaries (data from the National Center for Education Statistics) and all consumer prices (CPI-U) from 1978 to 2007, along with the average annual compounded increases for each series. College tuition has increased annually since 1978 at about twice the overall rate of inflation, 7.9% vs. 4.1%. In contrast, faculty salaries have increased annually at only 4.5%, just barely above the overall inflation rate.
Bottom Line: The significant real increases in college tuition over the last thirty years have not been caused by increases in faculty salaries.