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“don’t be afraid to push big, bold projects” and “be brave and patient”: Dustin Avent-Holt and Donald Tomaskovic-Devey on producing Relational Inequality Theory (RIT)

 

Dustin Avent-Holt and Donald Tomaskovic-Devey, who collaboratively published their book Relational Inequalities: An Organizational Approach (Oxford University Press), graciously agreed to do a joint email interview with orgtheory!  Here, we discuss their book and the process leading up to the production of the book.  Readers who are thinking of how to apply relational inequality theory (RIT), join and bridge scholarly conversations, and/or handle collaborative projects, please take note.

First, I asked Dustin and Don substantive questions about RIT.  Here, both authors describe how they used their workplaces in higher education as laboratories for refining their theory.  Also, Don channeled his disappointment with the limits of Chuck Tilly’s Durable Inequalities into fueling this endeavor.

1. Katherine.  How did you apply the insight of relational inequality in your own lives?  For example, both of you are at public universities – how does knowing relational inequality affect your ways of interacting with other people and institutions?

Dustin. I think for me one of the ways I see this is becoming faculty during the process of writing the book and being in a transitioning institution. I was hired out of grad school to Augusta University when it had just merged with the Medical College of Georgia. With this merger, Augusta University moved from being a teaching-focused college to a comprehensive research university that includes both graduate and undergraduate programs and a mission focused on research. Experiencing this transition  made me think through the daily lives of organizations in a much less structural way as I saw people negotiating and renegotiating the meaning of the institution, the practices and policies, creating new ways of fulfilling institutional roles, etc. I guess in that way it highlighted the work of Tim Hallet on inhabited institutionalism. As university faculty and staff, we didn’t just copy a bunch of templates from the environment, people were translating them and challenging them in the organization. And we still are, 7 years later, and I suspect we will be for a very long time. Organizations at that moment became enactments rather than structures for me, something to be relationally negotiated not simply imported. Don and my endeavor then to understand inequality in this context actually began to make more sense. And in fact during our weekly conversations about the book, I do remember often relating stories to Don of what was going on, and this certainly shaped how I thought about the processes we were thinking through.

I don’t know if that is what you were after in your question, but it is for me this experience shaped how I have come to think about organizations, and became central to how we think about organizations in the book. 

Don. No fair, actually apply a theory in our own lives? Seriously though, I became pretty frustrated with the black hole explanations of local inequalities as reflecting “structure” or “history”. These can be analytically useful, but simultaneously disempowering. Yes, some students come to the University with cultural capital that matches some professors, but this does not make them better students, just relationally advantaged in those types of student-teacher interactions. At the same time the University exploits revenue athletes for its purposes while excluding many others from full participation. The struggles of first gen students and faculty are produced by relational inequalities. 

As a department chair I was keenly aware of the university dance of claims making around status and revenue and that this had to be actively negotiated if our department was going to be able to claim and sequester resources. This sounds and to some extent is harsh, since success might mean taking resources indirectly from weaker or less strategic departments, although it can also feel insurgent if the resource appears to be granted or extracted from the Provost. But the truth is that university resources flow in a complex network of relationships among units, students, legislators and vendors (beware the new administrative software contract!). 

The Dean will pretend this is about your unit’s “productivity”, it’s never that simple.*  It’s also great to have allies, at UMass we have a great faculty union that works to level the playing field between departments and disrupt the administrative inequality dance.

* Katherine’s addition: Check out this satirical twitter feed about higher ed administration for laugh/cries.

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book spotlight: beyond technonationalism by kathryn ibata-arens

At SASE 2019 in the New School, NYC, I served as a critic on an author-meets-critic session for Vincent de Paul Professor of Political Science Kathryn Ibata-Arens‘s latest book, Beyond Technonationalism: Biomedical Innovation and Entrepreneurship in Asia.  

Beyondtechnonationalismcover

Here, I’ll share my critic’s comments in the hopes that you will consider reading or assigning this book and perhaps bringing the author, an organizations researcher and Asia studies specialist at DePaul, in for an invigorating talk!

“Ibata-Arens’s book demonstrates impressive mastery in its coverage of how 4 countries address a pressing policy question that concerns all nation-states, especially those with shifting markets and labor pools.  With its 4 cases (Japan, China, India, and Singapore),  Beyond Technonationalism: Biomedical Innovation and Entrepreneurship in Asia covers impressive scope in explicating the organizational dimensions and national governmental policies that promote – or inhibit – innovations and entrepreneurship in markets.

The book deftly compares cases with rich contextual details about nation-states’ polices and examples of ventures that have thrived under these policies.  Throughout, the book offers cautionary stories details how innovation policies may be undercut by concurrent forces.  Corruption, in particular, can suppress innovation. Espionage also makes an appearance, with China copying’s Japan’s JR rail-line specs, but according to an anonymous Japanese official source, is considered in ill taste to openly mention in polite company. Openness to immigration and migration policies also impact national capacity to build tacit knowledge needed for entrepreneurial ventures.  Finally, as many of us in the academy are intimately familiar, demonstrating bureaucratic accountability can consume time and resources otherwise spent on productive research activities.

As always, with projects of this breadth, choices must made in what to amplify and highlight in the analysis.  Perhaps because I am a sociologist, what could be developed more – perhaps for another related project – are highlighting the consequences of what happens when nation-states and organizations permit or feed relational inequality mechanisms at the interpersonal, intra-organizational, interorganizational, and transnational levels.  When we allow companies and other organizations to, for example, amplify gender inequalities through practices that favor advantaged groups over other groups, what’s diminished, even for the advantaged groups?

Such points appear throughout the book, as sort of bon mots of surprise, described inequality most explicitly with India’s efforts to rectify its stratifying caste system with quotas and Singapore’s efforts to promote meritocracy based on talent.  The book also alludes to inequality more subtly with references to Japan’s insularity, particularly regarding immigration and migration. To a less obvious degree, inequality mechanisms are apparent in China’s reliance upon guanxi networks, which favors those who are well-connected. Here, we can see the impact of not channeling talent, whether talent is lost to outright exploitation of labor or social closure efforts that advantage some at the expense of others.

But ultimately individuals, organizations, and nations may not particularly care about how they waste individual and collective human potential.  At best, they may signal muted attention to these issues via symbolic statements; at worst, in the pursuit of multiple, competing interests such as consolidating power and resources for a few, they may enshrine and even celebrate practices that deny basic dignities to whole swathes of our communities.

Another area that warrants more highlighting are various nations’ interdependence, transnationally, with various organizations.  These include higher education organizations in the US and Europe that train students and encourage research/entrepreneurial start-ups/partnerships.  Also, nations are also dependent upon receiving countries’ policies on immigration.  This is especially apparent now with the election of publicly elected officials who promote divisions based on national origin and other categorical distinctions, dampening the types and numbers of migrants who can train in the US and elsewhere.

Finally, I wonder what else could be discerned by looking into the state, at a more granular level, as a field of departments and policies that are mostly decoupled and at odds. Particularly in China, we can see regional vs. centralized government struggles.”

During the author-meets-critics session, Ibata-Arens described how nation-states are increasingly concerned about the implications of elected officials upon immigration policy and by extension, transnational relationships necessary to innovation that could be severed if immigration policies become more restrictive.

Several other experts have weighed in on the book’s merits:

Kathryn Ibata-Arens, who has excelled in her work on the development of technology in Japan, has here extended her research to consider the development of techno-nationalism in other Asian countries as well: China, Singapore, Japan, and India. She finds that these countries now pursue techno-nationalism by linking up with international developments to keep up with the latest technology in the United States and elsewhere. The book is a creative and original analysis of the changing nature of techno-nationalism.”
—Ezra F. Vogel, Harvard University
“Ibata-Arens examines how tacit knowledge enables technology development and how business, academic, and kinship networks foster knowledge creation and transfer. The empirically rich cases treat “networked technonationalist” biotech strategies with Japanese, Chinese, Indian, and Singaporean characteristics. Essential reading for industry analysts of global bio-pharma and political economists seeking an alternative to tropes of economic liberalism and statist mercantilism.”
—Kenneth A. Oye, Professor of Political Science and Data, Systems, and Society, Massachusetts Institute of Technology
“In Beyond Technonationalism, Ibata-Arens encourages us to look beyond the Asian developmental state model, noting how the model is increasingly unsuited for first-order innovation in the biomedical sector. She situates state policies and strategies in the technonationalist framework and argues that while all economies are technonationalist to some degree, in China, India, Singapore and Japan, the processes by which the innovation-driven state has emerged differ in important ways. Beyond Technonationalism is comparative analysis at its best. That it examines some of the world’s most important economies makes it a timely and important read.”
—Joseph Wong, Ralph and Roz Halbert Professor of Innovation Munk School of Global Affairs, University of Toronto
Kathryn Ibata-Arens masterfully weaves a comparative story of how ambitious states in Asia are promoting their bio-tech industry by cleverly linking domestic efforts with global forces. Empirically rich and analytically insightful, she reveals by creatively eschewing liberalism and selectively using nationalism, states are both promoting entrepreneurship and innovation in their bio-medical industry and meeting social, health, and economic challenges as well.”
—Anthony P. D’Costa, Eminent Scholar in Global Studies and Professor of Economics, University of Alabama, Huntsville
For book excerpts, download a PDF here.  Follow the author’s twitter feed here.

my visits to wellesley college

Last week, controversy broke out over Wellesley College’s Freedom Project, a program designed to have students discuss the meaning of freedom through various activities. The program is run by sociologist Tom Cushman and receives much of its funding from the Charles Koch Foundation.

The controversy has a few parts. For example, there is the accusation that Cushman and his staff “silenced” Koch critics. Josh McCabe, a sociologist and assistant dean at Endicott College, pointed out this is simply incorrect. As one of the staff at the Freedom Project, he was directly responsible for the academic programming. For example, in a response to critics in National Review, McCabe points out that he invited a political scientist whose research is highly critical of the Kochs. He also invited a number of sociologists, almost all of whom are political liberal and very likely to be critics of the Koch’s politics. This includes Elizabeth Popp Berman, who writes for this blog, and Cornell sociologist Kim Weeden.

Now, I want to talk about my experience. Twice, I was invited to speak at the Freedom Project. The first time, I spoke about whether social movements promote freedom. I argued that it’s mixed – some do and some don’t. The second time, I gave a talk about the “common grounds” argument for open borders. This is the idea that conservatives and liberals should both be in favor of free migration.

Each time I visited, I came during the winter “intersession.” For about a week, fifteen undergraduates read together, debated, and listen to outside speakers, including myself. When I visited the class, the students were engaged. When I asked about their political leanings, the average would probably be described as “Hillary Clinton” democrat. Of course, I wanted them to agree with my views – but many didn’t and there was much active debate.

I also got to meet other speakers. I did meet many who were conservative and libertarian. But I also sat in on a lecture by one of Wellesley’s philosophy professors, who actually produced arguments *against* unrestricted free speech. I also met Nadya Hajj, who gave an incredibly engaging talk about how people maintain Palestinian economy and community in the occupied territories.

During my last trip, I set aside some time to interview one of the staff at Wellesley’s art museum because I am working on a project about the careers of visual artists. During my interview, I was told that Tom Cushman was one of the faculty members who defended some controversial art that had been brought to the campus a few years back. That is important to know because Professor Cushman is not merely defending his free speech rights, but he defends the rights of others.

That was my experience. The Freedom Project is one professor’s attempt to bring a discussion of freedom to one of America’s greatest colleges. People of many different views and academic disciplines were brought in, the students vigorously debated the issues. It is funded by conservative and libertarians donors. That, by itself, is not a problem as long as donors do not direct the academic content of the unit.

50+ chapters of grad skool advice goodness: Grad Skool Rulz ($4.44 – cheap!!!!)/Theory for the Working Sociologist (discount code: ROJAS – 30% off!!)/From Black Power/Party in the Street / Read Contexts Magazine– It’s Awesome! 

Written by fabiorojas

April 2, 2018 at 4:01 am

remaking higher education for turbulent times, wed., march 28, 9am-6pm EDT, Graduate Center

For those of you in NYC (or those who want to watch a promised live webcast at bit.ly/FuturesEd-live  http://videostreaming.gc.cuny.edu/videos/livestreams/page1/ with a livestream transcript here: http://www.streamtext.net/player?event=CUNY), the Graduate Center Futures Initiative is hosting a conference of CUNY faculty and students on Wed., March 28, 9am-6pm EDT at the Graduate Center.  Our topic is: “Remaking higher education for turbulent times.” In the first session “Higher Education at a Crossroads” at 9:45am EDT,  Ruth Milkman and I, along with other panelists who have taught via the Futures Initiative, will be presenting our perspectives on the following questions:

  1. What is the university? What is the role of the university, and whom does it serve?
  2. How do political, economic, and global forces impact student learning, especially institutions like CUNY?
  3. What would an equitable system of higher education look like? What could be done differently?

Ruth and I will base our comments on our experiences thus far with teaching a spring 2018 graduate course about changes in the university system, drawing on research conducted by numerous sociologists, including organizational ethnographers.  So far, our class has included readings from:

We will discuss the tensions of reshaping long-standing institutions that have reproduced privilege and advantages for elites and a select few, as well as efforts to sustain universities (mostly public institutions) that have served as a transformational engine of socio-economic mobility and social change.  More info, including our course syllabus, is available via the Futures Initiatives blog here.

Following our session, two CUNY faculty and staff who are taking our class, Larry Tung and Samini Shahidi will be presenting about their and their classmates’ course projects.

A PDF of the full day’s activities can be downloaded here: FI-Publics-Politics-Pedagogy-8.5×11-web

If you plan to join us (especially for lunch), please RSVP ASAP at bit.ly/FI-Spring18

Written by katherinechen

March 21, 2018 at 4:53 pm

in NYC spring 2018 semester? looking for a PhD-level course on “Change and Crisis in Universities?”

Are you a graduate student in the Inter-University Doctoral Consortium or a CUNY graduate student?*  If so, please consider taking “Change & Crisis in Universities: Research, Education, and Equity in Uncertain Times” class at the Graduate Center, CUNY.  This course is cross-listed in the Sociology, Urban Education and Interdisciplinary Studies programs.

Ruth Milkman and I are co-teaching this class together this spring on Tuesdays 4:15-6:15pm.  Our course topics draw on research in organizations, labor, and inequality.  This course starts on Tues., Jan. 30, 2018.

Here’s our course description:

 

This course examines recent trends affecting higher education, with special attention to how those trends exacerbate class, race/ethnicity, and gender inequalities. With the rising hegemony of a market logic, colleges and universities have been transformed into entrepreneurial institutions. Inequality has widened between elite private universities with vast resources and public institutions where students and faculty must “do more with less,” and austerity has fostered skyrocketing tuition and student debt. Tenure-track faculty lines have eroded as contingent academic employment balloons.  The rise of on-line “learning” and expanding class sizes have raised concerns about the quality of higher education, student retention rates, and faculty workloads.  Despite higher education’s professed commitment to diversity, disadvantaged racial and ethnic groups remain underrepresented, especially among faculty. Amid growing concerns about the impact of micro-aggressions, harassment, and even violence on college campuses, liberal academic traditions are under attack from the right. Drawing on social science research on inequality, organizations, occupations, and labor, this course will explore such developments, as well as recent efforts by students and faculty to reclaim higher education institutions.

We plan to read articles and books on the above topics, some of which have been covered by orgtheory posts and discussions such as epopp’s edited RSO volume, Armstrong and Hamilton’s Paying for the Party, and McMillan Cottom’s Lower Ed: The Troubling Rise of For-Profit Colleges in the New Economy.  We’ll also be discussing readings by two of our guestbloggers as well, Ellen Berrey and Caroline W. Lee.

*If you are a student at one of the below schools, you may be eligible, after filing  paperwork by the GC and your institution’s deadlines, to take classes within the Consortium:

Columbia University, GSAS
Princeton University – The Graduate School
CUNY Graduate Center
Rutgers University
Fordham University, GSAS
Stony Brook University
Graduate Faculty, New School University
Teachers College, Columbia University
New York University, GSAS, Steinhardt

Written by katherinechen

January 8, 2018 at 8:12 pm

the PROSPER Act, the price of college, and eroding public goodwill

The current Congress is decidedly cool toward colleges and the students attending them. The House version of the tax bill that just passed eliminates the deduction on student loan interest and taxes graduate student tuition waivers as income. Both House and Senate bills tax the largest college endowments.

Now we have the PROSPER Act, introduced on Friday. The 500-plus page bill does many things. It kills the Department of Education’s ability to keep aid from going to for-profit schools with very high debt-to-income ratios, or to forgive the loans of defrauded student borrowers . It loosens the rules that keep colleges from steering students into questionable loans in exchange for parties, perks, and other kickbacks.

And it changes the student loan program dramatically, ending subsidized direct loans and replacing them with a program (Federal ONE) that looks more like current unsubsidized loans. Borrowing limits go up for undergrads and down for some grads. The terms for income-based repayment get tougher, with higher monthly payments and no forgiveness after 20 years. Public Service Loan Forgiveness, particularly important to law schools, comes to an end. (See Robert Kelchen’s blog for some highlights and his tweetstorm for a blow-by-blow read of the bill.)

To be honest, this could be worse. Although I dislike many of the provisions, given the Republican higher ed agenda there’s nothing shocking or unexpectedly punitive, like the grad tuition tax was.

Still, between the tax bill and this one, Congress has taken some sharp jabs at nonprofit higher ed. This goes along with a dramatic downward turn in Republican opinion of colleges over the last two years.Capture

Obviously, some of this is a culture war. Noah Smith highlights student protests and the politicization of the humanities and social sciences as the reason opinion has deteriorated. I think there are aspects of this that are problems, but the flames have mostly been fanned by those with a preexisting agenda. There just aren’t that many Reed Colleges out there.

I suspect colleges are also losing support, though, for another reason—one that is much less partisan. That is the cost of college.

I think colleges have ignored just how much goodwill has been burned up by the rise in college costs. For the last couple of weeks, I’ve been buried in data about tuition rates, net prices, and student loans. Although intellectually I knew how much prices risen, it was still shocking to realize how different the world of higher ed was in 1980.

The entire cost of college was $7,000 a year. For everything. At a four-year school. At a time when the value of the maximum Pell Grant was over $5,000, and the median household income was not far off from today’s. Seriously, I can’t begin to imagine.

The change has been long and gradual—the metaphorical boiling of the frog. The big rise in private tuitions took place in the 90s, but it wasn’t until after 2000 that costs at publics (both sticker price and net price—the price paid after scholarships and grant aid) increased dramatically. Unsurprisingly, student borrowing increased dramatically along with it. The Obama administration reforms, which expanded Pell Grants and improved loan repayment terms, haven’t meant lower costs for students and their families.

Picture1What I’m positing is that the rising cost of college and the accompanying reliance on student loans have eroded goodwill toward colleges in difficult-to-measure ways. On the one hand, the big drop in public opinion clearly happened in last two years, and is clearly partisan. Democrats have slightly ticked up in their assessment of college at the same time.

But I suspect that even support among Democrats may be weaker than it appears, particularly when it comes to bread-and-butter issues, rather than culture-war issues. Only a small minority (22%) of people think college is affordable, and only 40% think it provides good value for the money. And this is the case despite the growing wage gap between college grads and high school grads. Sympathy for proposals that hit colleges financially—whether that means taxing endowments, taxing tuition waivers, or anything else that looks like it will force colleges to tighten their belts—is likely to be relatively high, even among those friendly to college as an institution.

This is likely worsened by the common pricing strategy that deemphasizes the importance of sticker price and focuses on net price. But the perception, as well as the reality, of affordability matters. Today, even community college tuition ($3500 a year, on average) feels like a burden.

The point isn’t whether college is “worth it” in terms of the long-run income payoff. In a purely economic sense there’s no question it is and will continue to be. But pushing the burden of cost onto individuals and families, rather than distributing it more broadly, makes it feel unbearable, and makes people think colleges are just in it for the money. (Which sometimes they are.) I’m always surprised that my SUNY students think the mission of the university is to make money off of them.

This perception means that students and their families and the larger public will be reluctant to support higher education, whether in the form of direct funding, more financial aid, or the preservation of weird but mission-critical perks, like not taxing tuition waivers.

The PROSPER Act, should it come to fruition, will provide another test for public institutions. Federal borrowing limits for undergraduates will rise by $2,000 a year, to $7,500 for freshmen, $8,500 for sophomores, and $9,500 for juniors and seniors. If public institutions immediately default to expecting students to take out the new maximum in federal loans each year, they will continue to erode goodwill even among those not invested in the culture wars.

The sad thing is, this is a self-reinforcing cycle. Colleges, especially public institutions, may feel like they have no choice but to allow tuition to climb, then try to make up the difference for the lowest-income students. But by adopting this strategy, they undermine their very claim to public support. Letting borrowing continue to climb may solve budget problems in the short run. In the long run, it’s shooting yourself in the foot.

 

 

Written by epopp

December 4, 2017 at 3:55 pm

what nonacademics should understand about taxing graduate school

There are many bad provisions in the proposed tax legislation. This isn’t even the worst of them. But it’s the one that most directly affects my corner of the world. And, unlike the tax deduction for private jets, it’s one that can be hard for people outside of that world to understand.

That proposal is to tax tuition waivers for graduate students working as teaching or research assistants. Unlike graduate students in law or medical or business schools, graduate students in PhD programs generally do not pay tuition. Instead, a small number of PhD students are admitted each year. In exchange for working half-time as a TA or RA, they receive a tuition waiver and are also paid a stipend—a modest salary to cover their living expenses.

Right now, graduate students are taxed on the money they actually see—the $20,000 or so they get to live on. The proposal is to also tax them on the tuition the university is not charging them. At most private schools, or at out-of-state rates at most big public schools, this is in the range of $30,000 to $50,000.

I think a lot of people look at this and say hey, that’s a huge benefit. Why shouldn’t they be taxed on it? They’re getting paid to go to school, for goodness sakes! And a lot of news articles are saying they get paid $30,000 a year, which is already more than many people make. So, pretty sweet deal, right?

Here’s another way to think about it.

Imagine you are part of a pretty typical family in the United States, with a household income of $60,000. You have a kid who is smart, and works really hard, and applies to a bunch of colleges. Kid gets into Dream College. But wait! Dream College is expensive. Dream College costs $45,000 a year in tuition, plus another $20,000 for room and board. There is no way your family can pay for a college that costs more than your annual income.

But you are in luck. Dream College has looked at your smart, hardworking kid and said, We will give you a scholarship. We are going to cover $45,000 of the cost. If you can come up with the $20,000 for room and board, you can attend.

This is great, right? All those weekends of extracurriculars and SAT prep have paid off. Your kid has an amazing opportunity. And you scrimp and save and take out some loans and your family comes up with $20,000 a year so your kid can attend Dream College.

But wait. Now the government steps in. Oh, it says. Look. Dream College is giving you something worth $45,000 a year. That’s income. It should be taxed like income. You say your family makes $60,000 a year, and pays $8,000 in federal taxes? Now you make $105,000. Here’s a bill for the extra $12,000.

Geez, you say. That can’t be right. We still only make $60,000 a year. We need to somehow come up with $20,000 so our kid can live at Dream College. And now we have to pay $20,000 a year in federal taxes? Plus the $7000 in state and payroll taxes we were already paying? That only leaves us with $33,000 to live on. That’s a 45% tax rate! Plus we have to come up with another $20,000 to send to Dream College! And we’ve still got a mortgage. No Dream College for you.

This is the right analogy for thinking about how graduate tuition remission works. The large majority of students who are admitted into PhD programs receive full scholarships for tuition. The programs are very selective, and students admitted are independent young adults, who generally can’t pay $45,000 a year. Unlike students entering medical, law, or business school, many are on a path to five-figure careers, so they’re not in a position to borrow heavily. Most of them already have undergraduate loans, anyway.

The university needs them to do the work of teaching and research—the institution couldn’t run without them—so it pays them a modest amount to work half-time while they study. $30,000 is unusually high; only students in the most selective fields and wealthiest universities receive that. At the SUNY campus where I work, TAs make about $20,000 if they are in STEM and $16-18,000 if they are not. At many schools, they make even less. (Here are some examples of TA/RA salaries.)

Right now, those students are taxed on the money they actually see—the $12,000 to $32,000 they’re paid by the university. Accordingly, their tax bills are pretty low—say, $1,000 to $6,000, including state and payroll taxes, if they file as individuals.

What this change would mean is that those students’ incomes would go up dramatically, even though they wouldn’t be seeing any more money. So their tax bills would go up too—to something like $5,000 to $18,000, depending on their university. Some students would literally see their modest incomes cut in half. The worst case scenario is that you go a school with high tuition ($45,000) and moderate stipends ($20,000), in which case your tax bill as an individual would go up about $13,000. Your take-home pay has just dropped from $17,500 a year to $4,500.

What would the effects of such a change be? The very richest universities might be able to make up the difference. If it wanted to, Harvard could increase stipends by $15,000. But most schools can’t do that. Some schools might try to reclassify tuition waivers to avoid the tax hit. But there’s no straightforward way to do that.

Some students would take on more loans, and simply add another $60,000 of graduate school debt to their $40,000 of undergraduate debt before starting their modest-paying careers. But many students would make other choices. They would go into other careers, or pursue jobs that don’t require as much education. International students would be more likely to go to the UK or Europe, where similar penalties would not exist. We would lose many of the world’s brightest students, and we would disproportionately lose students of modest means, who simply couldn’t justify the additional debt to take a relatively high-risk path. The change really would be ugly.

All this would be to extract a modest amount of money—only about 150,000 graduate students receive such waivers each year—as part of a tax bill that is theoretically, though clearly not in reality, aimed at helping the middle class.

It is important for the U.S. to educate PhD students. Historically, we have had the best university system in the world. Very smart people come from all over the globe to train in U.S. graduate programs. Most of them stay, and continue to contribute to this country long after their time in graduate school.

PhD programs are the source of most fundamental scientific breakthroughs, and they educate future researchers, scholars, and teachers. And the majority of PhD students are in STEM fields. There may be specific fields producing too many PhDs, but they are not the norm, and charging all PhD students another $6,000-$11,000 (my estimate of the typical increase) would be an extremely blunt instrument for changing that.

Academia is a strange and relatively small world, and the effects of an arcane tax change are not obvious if you’re not part of it. But I hope that if you don’t think we should charge families tens of thousands of dollars in taxes if their kids are fortunate enough to get a scholarship to college, you don’t think we should charge graduate students tens of thousands of dollars to get what is basically the same thing. Doing so would basically be shooting ourselves, as a country, in the foot.

[Edited to adjust rough estimates of tax increases based on the House version of the bill, which would increase standard deductions. I am assuming payroll taxes would apply to the full amount of the tuition waiver, which is how other taxable tuition waivers are currently treated. Numbers are based on California residence and assume states would continue not to tax tuition waivers. If anyone more tax-wonky than me would like to improve these estimates, feel free.]

Written by epopp

November 18, 2017 at 5:29 pm