Economics Detective
Economics Detective

Universities, Adjuncts, and Public Choice with Phil Magness

Phil Magness returns to the podcast to discuss the public choice economics of universities. We discuss the internal politics of universities, their rising reliance on adjunct scholars to teach courses, the increasing numbers of administrators staffing universities, and the trends in faculty employme

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Garrett M. Petersen HostPhil Magnus Guest

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Episode Summary

Executive Summary: Phil Magnus argues that many controversies in higher education are better understood through public choice incentives than through simple narratives of exploitation or corporatization. He says adjunct growth, PhD overproduction, English department expansion, and administrative bloat largely reflect institutional incentives, student demand, and bureaucratic mission creep rather than a collapse of the university model.

Main Topics: Adjunct labor and the true scale of adjunctification (Priority: 5/5): Magnus explains that adjunct growth is real but often overstated. He distinguishes between full-time career adjuncts, moonlighting professionals, and part-time workers who do not want full-time academic jobs, arguing the debate is distorted by focusing on the most precarious subset. Faculty staffing and student demand (Priority: 5/5): The discussion shows that full-time faculty-to-student ratios have remained remarkably stable over decades, even as adjunct hiring increased. Adjuncts often exist to provide flexible scheduling and expand course offerings, especially for nontraditional and adult students. Overproduction of PhDs and discipline-specific labor markets (Priority: 5/5): Magnus contrasts healthy markets like economics with glutted fields like English, where too many PhDs are produced relative to available jobs and alternative employment options. He argues that some disciplines worsen their own labor crises through self-reinforcing program expansion. Academic rent-seeking and composition requirements (Priority: 5/5): He and Brennan propose 'academic rent-seeking' to explain how departments secure recurring resources and positions. English composition requirements are presented as a case where a department gains stable institutional power and employment even without evidence of improved student writing outcomes. Administrative growth and bureaucracy (Priority: 4/5): The conversation emphasizes that university growth has come more from low-level administrative staff than from senior leadership. Magnus likens universities to government bureaucracies, where regulatory compliance, accreditation, and new service offices drive mission creep and staff expansion. Political skew in universities (Priority: 3/5): Magnus notes a leftward shift in faculty self-identification since around 2000, especially in humanities disciplines. He suggests politicized administrative offices may be extending that trend, though the data on administrators is weaker than on faculty. Upcoming book on ethics and incentives in higher education (Priority: 4/5): The episode closes with a preview of Cracks in the Ivory Tower: The Business Ethics of Higher Education, which combines public choice analysis and ethics to assess university marketing, program design, student value, and institutional honesty.

Key Arguments: Adjunctification is often mischaracterized: the most visible crisis cases are a small subset of adjuncts, while many adjuncts are moonlighting professionals, retirees, or grad students who choose part-time work. The overall faculty-to-student ratio has stayed close to one full-time professor per 25 students for roughly 40 years, so adjunct growth did not replace full-time faculty in the aggregate. At typical institutions, full-time faculty still carry substantial teaching loads; elite research universities are the main exception because professors there often buy out teaching time for research. Adjunct hiring rises because universities want lower student-to-faculty ratios for rankings and advertising, and because students increasingly want flexible evening/weekend scheduling. PhD overproduction is not uniform across disciplines: economics has a comparatively strong labor market, while English produces far more PhDs than available jobs and has limited non-academic demand. Low-ranked PhD programs persist because they benefit faculty and institutions through prestige, teaching assistants, research assistants, and pay bumps, even when they place students poorly. English departments have expanded through mandatory composition requirements, creating a large employment base detached from the declining number of English majors. Mandatory composition classes appear to have little measurable effect on student writing or critical thinking, suggesting the expansion is more about sustaining jobs than improving outcomes. Universities behave more like bureaucracies than firms: administrators and faculty pursue budget, security, prestige, and staff growth through shared governance and internal incentives. Administrative growth is driven by compliance obligations, accreditation, and new quasi-political offices; low-level administrative staff have expanded faster than faculty. Faculty politics skew increasingly left, especially in humanities fields, but the causal role of politics in administrative expansion remains less certain. The book aims to evaluate not just efficiency but ethics: whether universities truthfully market degrees and responsibly recruit students into low-prospect programs.

Data Points: Full-time professor to student ratio: about 1:25 - Magnus says this ratio has remained stable in higher education for roughly 40 years. Adjunct pay per course: around $3,000 per class - He cites this as the national average for a typical adjunct course. Potential annual adjunct income: about $45,000 per year - Back-of-the-envelope estimate for teaching 15 courses at $3,000 each. Full-time adjunct share: as few as 5% of adjuncts - He cites a survey suggesting the beleaguered full-time adjunct group is a small minority. English PhDs without full-time jobs: 40% to 50% in some years - He says English has a severe job-market glut and many graduates fail to land full-time academic work. English PhDs outside academia: as low as 15% - Estimated share of English PhDs working outside academia, highlighting limited alternative employment. Composition requirement growth: 2 to 3 times since 1974 - Mandatory writing/composition requirements have expanded substantially over time. Post-composition learning outcome: no statistically meaningful improvement after roughly 2 years - A sociological study found no significant gains in writing or critical thinking after mandatory composition courses. English faculty count: about 75,000 - Estimated number of English faculty in the United States teaching in the university system. English degrees issued annually: about 45,000 - Approximate annual number of English degrees issued. Economics faculty per degree: 0.4 faculty per BA/BS - Used to compare faculty-to-degree ratios across disciplines. Sociology faculty per degree: 0.5 faculty per degree - Used as a mid-range comparison discipline. English faculty per degree: 1.5 to 2 faculty per degree - Shows the unusually high staffing ratio in English. Full-time faculty in the early 1970s: about 400,000 - U.S. higher-ed full-time faculty baseline. Full-time faculty in the early 2010s: just short of 800,000 - Demonstrates near-doubling over time alongside enrollment growth. Senior administrators in 1970: about 100,000 - Includes presidents, provosts, senior deans, and similar executives. Senior administrators today: just short of 250,000 - Shows more than doubling of upper-level administrators. Low-level bureaucratic staff in 1976: just under 200,000 - Department of Education category of other professional staff. Low-level bureaucratic staff today: more than 800,000 - The fastest-growing administrative category, surpassing faculty numbers. Political self-identification among faculty before 2000: about 40% to 50% liberal and 20% to 30% conservative - Described as a relatively stable faculty political distribution for decades. Political self-identification among faculty after 2000: about 60% to 65% liberal - Magnus says faculty have become significantly more left-leaning since 2000.

Pivotal Quotes: "adjuncting is described as exploitative. There are even a few articles out there that call it modern-day slavery" — Phil Magnus: He is criticizing sensationalized media and academic coverage of adjunct labor. "we call it academic rent-seeking" — Phil Magnus: He introduces the central theory used to explain how departments secure resources and recurring employment. "universities tend to work like government bureaucracies" — Phil Magnus: He contrasts the university with a firm and explains why bureaucratic incentives better fit the evidence.

Implications: Listeners should expect higher education debates to reflect incentives, not just ideals. The episode suggests universities may expand staff and programs even when outcomes are weak, making transparency, labor-market realism, and program accountability increasingly important.

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Economics Detective Radio is a podcast about markets, ideas, institutions, and all things related to the field of economics. Episodes consist of long-form interviews and are generally released on Fridays. Topics include economic theory, economic history, the history of thought, money, banking, finance, macroeconomics, public choice, business cycles, health care, education, international trade, and anything else of interest to economists, students, and serious amateurs interested in the scienc...

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