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Should we let graduate students in private universities form unions?

Summary:
That is the topic of my latest Bloomberg column and my answer is no, here is one excerpt: One core reason to have unions is to boost the real wages of needy workers. But graduate students are not employees in the traditional sense. They are receiving training, often on very favorable terms. Typically a university is investing large sums of money to make those students employable and successful, usually on the academic market; the University of Chicago says it invests more than 0,000 per doctoral student. If those students demanded and received higher wages for their teaching, the university would not necessarily increase its investment in them at all; it could simply reallocate existing funds. Thus it is misleading to think there is a real bargaining situation here. Think of a

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That is the topic of my latest Bloomberg column and my answer is no, here is one excerpt:

One core reason to have unions is to boost the real wages of needy workers. But graduate students are not employees in the traditional sense. They are receiving training, often on very favorable terms. Typically a university is investing large sums of money to make those students employable and successful, usually on the academic market; the University of Chicago says it invests more than $500,000 per doctoral student. If those students demanded and received higher wages for their teaching, the university would not necessarily increase its investment in them at all; it could simply reallocate existing funds. Thus it is misleading to think there is a real bargaining situation here.

Think of a university as an investor in these students, and toward that end it must choose between boosting their academic quality through better training, or paying them higher stipends and teaching wages to ease their immediate financial concerns. The incentive for the university, which cares about its broader and longer-term reputation, is to invest in the quality of those students but pay them smaller amounts (though enough to live on). In contrast, the incentive for a graduate student union would be to push for higher wages, given that the other university investments are less visible and hard to monitor.

At the margin, society is better off if the focus is on the training, which enhances productivity in the long term, rather than on higher wages and stipends for students in the short term.

And:

In general, when considering this issue, ask yourself a question: When it comes to bringing about change, do today’s universities have too many veto points or too few?

Some researchers have pointed out that graduate student unions don’t seem to have harmed the public universities that allow them (such unions, which are permissible in many states, would not be affected by the federal government’s decision). The evidence may be compelling in the short run, but the real costs are likely to come later — by slowing down or even preventing beneficial changes to the U.S. system of higher education. Furthermore, state labor laws dramatically limit what public employees can negotiate for. Unionized graduate students at private universities unions would not face similar restrictions.

Recommended, do read the whole thing.

The post Should we let graduate students in private universities form unions? appeared first on Marginal REVOLUTION.

Tyler Cowen
Tyler Cowen is an American economist, academic, and writer. He occupies the Holbert C. Harris Chair of economics as a professor at George Mason University and is co-author, with Alex Tabarrok, of the popular economics blog Marginal Revolution. Cowen and Tabarrok have also ventured into online education by starting Marginal Revolution University. He currently writes the "Economic Scene" column for the New York Times, and he also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly.

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