In the latest episode of The Key, Inside Higher Ed’s news and analysis podcast, two economists highlight opportunities that college and universities can grab to improve engagement with their local communities, create greater access for first-generation students and increase transparency around pricing.

David Hummels, professor of economics and dean emeritus, and Jay Akridge, trustee chair in teaching and learning excellence, professor of agricultural economics and former provost, both at Purdue University, are co-authors of a Substack newsletter on higher education, Finding Equilibrium.

They join Sara Custer, editor in chief of Inside Higher Ed, and this episode’s host, Colleen Flaherty, Inside Higher Ed’s editor for special content, to analyze the findings from the Inside Higher Ed/Hanover Research 2025 Survey of College and University Presidents.

In response to two-thirds of presidents having some serious doubts about the value of tenure, Hummels cautions that not offering faculty tenure means institutions are “going to have to pay faculty the way they’re paid in industry or you won’t be able to attract anyone.”

Tenure is similar to executive stock options in the private sector, he argues: “It causes faculty to invest far more than they otherwise would in critical functions—like developing curriculum, hiring, developing and evaluating other faculty—because their tenure is going to be a lot more valuable if they’re part of a thriving institution,” he says.

Akridge agrees with the 50 percent of survey respondents who say higher ed has a real affordability problem, even if his research shows that the value of college remains high and the debt students take on is overblown.

“The sticker price and the debt they take on becomes how they think about cost. And that’s real,” he says. “Part of the fear for us is, who hears that message? Students with means and whose parents went to college are going to go to college. The evidence is quite clear that lifetime earnings, wage premiums, quality of life, even life span are better for those that go to college, and these families know that. Students that are first generation, that are maybe lower income, maybe underserved—I think they’re quite susceptible to that message and may write off college as perhaps their ticket to a better life, and that’s concerning from an equity standpoint.”

A mere 3 percent of surveyed presidents said that higher ed has been very or extremely effective at responding to the diploma divide that is increasingly predictive of voter behavior. In response, Custer encourages colleges and universities to take accountability for, and be responsive to, valid critiques of higher education as a sector, while building on the confidence that many communities retain in their local institutions. She shared an example of a messaging campaign by one regional college that highlighted how graduates are contributing to the local area in everyday but fundamental ways. “‘We are putting really valuable people back into the community who are supporting you and your families and making it possible for you to live here,’” she summarizes.

Hummels also stresses the importance of making the case for academic research, currently under threat. “Science broadly is essential to the competitiveness of the economy, to our firms and to the success of our students. It’s not just this cute thing faculty do in their spare time. We do it because it is central to who we want to be as a country and what our firms want to become. And I think we have been neglectful about maintaining awareness of how important this is.”

Listen to the full episode.