is higher tuition a faculty pay raise in disguise?
A number of analyses have shown that (a) college tuition has outpaced inflation, (b) administrators have increased in number and in cost, and (c) graduate student and faculty pay have remained flat. This isn’t to say that the only force behind higher tuition is administrative growth, but it’s certainly one important factor. The way that this normally interpreted is that you have greedy administrators who are just voting themselves raises which, in the absence of competition, go unrestrained.
Here is a slightly different framing. Increased college costs are a collective pay increase for faculty. How? It helps to realize that faculty salaries are fairly constrained. In the arts and sciences, salaries top out at, about $95k, for full professors at most colleges. Research profs can add about $10k, liberal arts can subtract $10k. Not bad, but still modest compared to top professionals in other fields. It also helps to realize that people start hitting the full professor rank in their forties, which means you could have 20-30 years of work with few pay increases in real terms.
The solution? Stop being a professor. Switch to a more fluid labor market for executives. Unlike professor jobs, your skills are portable and there is actual demand. Luckily, there has been a recent increase in college cash flows, so the budget is bigger. If you believe this story, then the escalation of tuition and costs is simply society’s way of paying more to people who used to get “stuck” at the full professor level. They’re just called associate deans now.