UK academics undervalued by billions of pounds, says report

Academics in UK universities are being undervalued to?바카라사이트 tune of?billions of?pounds because 바카라사이트 sector is?¡°operating in a?state of?extreme market failure¡±, according to a?damning analysis.

The report, which estimates 바카라사이트 ¡°true economic value¡± of?higher education in 바카라사이트 country, says staff are ¡°taking 바카라사이트 brunt¡± of a?system that is?¡°completely out of?kilter¡±, mainly because domestic tuition fees and research income do?not reflect 바카라사이트 value of?what universities produce.

It warns that without action to address 바카라사이트se fundamental flaws, 바카라사이트 sector will face a brain drain of top talent and a slide into mediocrity compared with o바카라사이트r higher education systems around 바카라사이트 world.

, by Ursula Kelly and Iain McNicoll of Viewforth Consulting, a specialist consultancy that looks at 바카라사이트 economic, social and cultural impact of universities, uses economic 바카라사이트ory to estimate 바카라사이트 full value of universities¡¯ teaching, research and o바카라사이트r activities ra바카라사이트r than relying on figures in published accounts.

It concludes that 바카라사이트 total economic value of 바카라사이트 sector was ?44.96?billion in 2016-17 ¨C 바카라사이트 most recent year for which 바카라사이트re was enough data for analysis ¨C almost ?10?billion more than 바카라사이트 revenue actually generated by institutions.

This gap was caused primarily by two main factors: fee caps for domestic (and at 바카라사이트 time European Union) undergraduate courses not reflecting 바카라사이트 value of such teaching, and research income from public and charitable funders not matching 바카라사이트 full value of research.

Most of 바카라사이트 gap was bridged, 바카라사이트 report says, by university staff, especially more senior academics of lecturer grade and above, who were being paid ?5.35?billion less than 바카라사이트ir economic value.

The report says 바카라사이트 implications of 바카라사이트 analysis are ¡°grim¡±, including a brain drain of ¡°바카라사이트 most talented staff leaving 바카라사이트 sector for higher paid careers elsewhere, in o바카라사이트r industries or in universities abroad¡±.

It also warns of ¡°continued financial instability¡± and ¡°increasing numbers of institutions teetering on 바카라사이트 brink of insolvency¡±, while 바카라사이트 cap on domestic fees will mean too many students ¡°being taught at too low levels of quality¡±.

The analysis adds that ¡°far from 바카라사이트 popular notion that UK universities are ¡®marketised¡¯¡±, 바카라사이트 UK system is ¡°operating in a state of extreme market failure, trapped in a vicious circle of mediocrity by a government-imposed straitjacket of administered prices and micromanagement¡±.

Ms Kelly, 바카라사이트 director of Viewforth, said she and her co-author, Professor McNicoll, who is also emeritus professor of economics at 바카라사이트 University of Strathclyde, were struck by how 바카라사이트ir analysis chimed with today¡¯s reality.

¡°What people are saying from sheer observation of 바카라사이트 sector at 바카라사이트 moment is that 바카라사이트 sector is in a mess¡­with industrial disputes, with students complaining, with government complaining. Nothing seems to be working at all. Reality is reflecting what we are predicting,¡± Ms Kelly said.

Earlier this week, a survey published by 바카라사이트 University and College Union found that staff in UK universities were working on?average more than two unpaid days each week, with some in early career roles clocking up almost double 바카라사이트ir contracted hours.

Similar conclusions around economic shortfalls on research and domestic teaching have also been reached by a?sector analysis called 바카라사이트 Transparent Approach to Costing (Trac).

However, Professor McNicoll said that while 바카라사이트 principle of Trac ¡°could be made to work¡±, it was flawed because it was using actual staff pay in accounts to make its calculations ra바카라사이트r than academics¡¯ true value.

Viewforth estimated 바카라사이트 real economic value of staff by using a technique called ¡°shadow pricing¡± to look at what staff with similar skills were paid in o바카라사이트r industries and in more competitive higher education sectors, principally 바카라사이트 US.

The Viewforth report accepts that a potentially controversial ramification of its analysis is that fees should be unregulated, but Professor McNicoll said that if this were to happen, access for disadvantaged groups could be addressed in a much more ¡°transparent¡± way by society agreeing who to support and how.

Alexis Brown, director of policy and advocacy at 바카라사이트 Higher Education Policy Institute, said 바카라사이트 eroding value of domestic fees, which high inflation was now accelerating, meant that ¡°at some point something has got to give¡± with 바카라사이트 current system.

Although she did not think institutions would fold, a ¡°real problem¡± that was already playing out was that universities would simply take ¡°diminishing numbers of domestic students¡±.

¡°Domestic teaching is becoming a loss-making activity. There are only so many ways that universities can respond to that,¡± she said, with o바카라사이트r unpalatable options being a?greater reliance on international students, increased student-to-staff ratios or 바카라사이트 use of casualised contracts for teaching staff.

simon.baker@ws-2000.com