Modeling of Private Utility Function for disciplines based on Students’ Attitudes

In Iran policymaking in higher education has been done by using a bureaucratic approach regardless of market and real demand for the disciplines, in recent years. Ignorance of the students’ priorities and their attitudes in choosing field of study has led to the unbalanced development of the higher education system and inability to respond to the needs of society. The aim of this study is to identify, evaluate and model effective factors in the utility of disciplines based on students’ attitudes.

In this exploratory study, the private utility factors of disciplines from the students' points of view, in Tehran universities, were identified, categorized and analyzed simultaneously using Partial Least Squares Structural Equation Modeling technique (PLS-SEM) and Smart PLS 3.2.9 software.

The initial model of private utility of disciplines in this study had 5 constructs and 29 indicators, while the final model includes 3 constructs and 13 indicators. Finally, in addition to multi-group analysis for some nominal variables, the model and Private Utility Function for disciplines were presented. Private Utility Function can be used to measure and compare disciplines utility scores.

This study contributes to the need for demand analysis of disciplines in policymaking in higher education. The final model showed that the private utility of disciplines depends on 3 constructs: field-characteristics, university-characteristics and job-characteristics. The students declared that only 13 of 29 indicators, were asked for, are important in choosing a field of study and the cost is not an effective variable. Based on the results, it is suggested that higher education policymakers focus on the constructs and indicators in order to lead students to prioritized area in development programs of country and manage the demand for other disciplines. Since, the cost was not an important variable in final model, financing policies for disciplines could be revised to optimize the government budget allocation.