ABSTRACT

The American higher education system is not only one of the biggest mass systems of higher education in the world, 1 it is also highly differentiated in terms of quality, featuring both high-profile research and teaching universities as well as some less impressive institutions (de Wit, 1995). America is home to the largest private sector; 58% of its higher education institutions are private (American Council on Education [ACE], 2001, p. 1). The private sector, once dominated by nonprofit institutions, has seen further differentiation with the rise of the for-profit (proprietary) higher education institutions. In general, there is a steep reputational gradient between private and state universities. Private universities are regarded as offering programs of greater academic rigor and being more selective in their choice of students. The exceptions to this generalization are the large research-oriented public universities. American higher education is highly decentralized compared with Australia and the United Kingdom. It features a large number of external constituencies noted for having a significant impact on institutional autonomy and direction (Harcleroad, 1999). 2