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The false market in degrees is ruining higher education

Universities’ oligarchic control of degree provision and metrics’ misguided focus are shortchanging both students and academics, says Murdoch Gabbay

三月 23, 2022
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In case you haven’t noticed, UK university staff are on strike again this week, as part of a sequence of industrial action that began in 2018. The proximate cause is rising workloads, falling salaries and pensions, and declining real education outcomes. But let’s think like academics and look for deeper structural reasons as to why this is happening.

UK universities compete to offer education as a service product in a market system. Metrics – league tables and National Student Survey scores – provide feedback, so that market forces can motivate efficient production and product excellence. What could go wrong with healthy competition to deliver a quality service to discerning and motivated customers? Unfortunately, quite a lot.

To see why, let’s perform a thought experiment. Imagine we have 100 identical junior programming positions to fill from among 5,000 applicants, all of whom are 21 years old and just entering the workforce. How do we proceed?

The candidates don’t have track records; we can’t see, touch, smell, or weigh their education; and interviews don’t scale and can be unreliable. For better or worse, to get one of these 100 positions, a candidate will likely need a certificate affirming that they studied well enough to earn a degree.

Universities control the supply of these certificates by definition, and they operate in a competitive, metrics-based framework to efficiently provide them. However, metrics are rather loosely coupled to real educational outcomes and rather tightly coupled to students’ self-reported satisfaction. Metrics may even go up as product quality goes down – because what students really want is a comfortable campus, easy exams and a degree certificate, so that is what the metrics-based approach encourages.

Thus, teachers are forced into setting smaller, simpler exams to larger groups. In a classic tragedy of the commons, it is best for any particular student in any particular year not to grumble that less teacher attention and course content underwrites their grade. And how can students fully comprehend how badly they are being short-changed without adult hindsight and without having been educated in what education could be? Especially when investments in marketing and in the student-facing parts of campus infrastructure put a gloss on this intrinsically diminishing product.

Moreover, though universities compete to supply degrees, they do so within an oligopoly rather than a truly free market: a small group of providers have a collective monopoly over delivery and are protected by high barriers to entry. Thus it is hard for a disruptive competitor to step in with innovative education and certification models – and hard for students to substitute other products for their education-as-a-service – because the university sector has monopoly power over that transition from school to young professional.

The provider of a service sees everything not captured by the metrics as a cost. It sees no value in the non-financial or intangible benefits of actual education. Indeed, in a competitive metrics-based system, the provider would be remiss if it did. In particular, if experienced, talented lecturers can be made to work harder for less pay, then efficiency improves. If they leave, efficiency improves even more, since they can be replaced with cheaper labour on temporary contracts. It’s not personal; the market is just doing its job, to increase efficiency.

In my time in the sector, workloads have tripled, fees have risen, wages and pensions have fallen, and students are living at home to minimise the debt they run up, struggling to juggle studying with holding down poorly paid jobs. No good can come of this: not for young adults’ mental and financial well-being, not for education and not for the commercial and cultural activities that depend on it, which underpin the quality and competitiveness of the country and its economy.

Contrast this with the current energy market. There too, prices are rising, and you can’t stop buying energy because you’ll freeze if you do. But the energy market is regulated as a utility. No UK politician would dare argue that keeping babies and old people from freezing to death is a service, to be priced and dispensed according to market forces.

Even if we ignore the moral, philosophical, and economic debate about what “real” education could and should be, “education-as-a-service” fails on its own terms. University education is an intangible, and delivering it is a natural oligopoly, so it cannot be sustainably delivered through a market-based framework. Recent decades have proved, and continue to prove, the moral and economic harm of trying to pretend otherwise.

And that is why university staff are on strike.

is an assistant professor in the School of Mathematical and Computer Sciences at Heriot-Watt University.

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Reader's comments (5)

Thank you. This article is right on target. I work at a bottom-of-the-barrel institution that consistently has great NSS scores because students are spoon-fed what they need to know for each exam/assignment through the various courses - which is what they care about. They can’t comprehend that they are actually missing a proper, well-rounded, education as they graduate with their massively inflated degrees. Unable to think critically or even string a few coherent sentences together, they are happy as clams in deep water with their firsts and upper-seconds. Yet we all close our eyes to the fact that much of the metrics, just like the crooks tailoring the emperor’s new clothes, are quite unreliable.
Spot on to you both!
I too have worked at a low ranked 'University' that was extraordinarily good a cooking the metrics. The article and the comments are absolutely correct
I too have worked at a low ranked 'University' that was extraordinarily good a cooking the metrics. The article and the comments are absolutely correct
I just started working at a UK university after working at a non-UK university for 4 years. I am honestly shocked at what students get for the money they pay: 2 hours per week of my time plus my office hours. This is the same for other courses. When marking my MSc students I had to fail more than 50% because their work was worse than the work of my first year bachelor students at my previous university (in Europe). I was told to mark higher, so now only 10% failed the course. But I really struggle with this way of working. It is unfair on the students, and it is unfair on me as a lecturer that wants to teach and see students develop their skills. Very disheartening
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