December 16, 2018
The consulting firm McKinsey is a leading employer of graduates of elite law schools, business schools, medical schools, and other professional programs. The New York Times recently ran a piece attempting to link McKinsey to regimes that abuse human rights. McKinsey's response appears below.
Readers of this blog are probably familiar with how sloppy and slanted New York Times coverage can be in the higher education context. I would encourage readers not to jump to conclusions about McKinsey based on NY Times coverage.
Note: I worked as consultant at McKinsey in New York approximately 10 years ago. I have published in the N.Y. Times within the last 3 years.
August 13, 2018
I have only one comment on this terrible idea: don't do it! It will make the lives of job seekers much worse, and increase their out-of-pocket costs, since they may then feel the need to attend two separate hiring conferences (which belies all the blather in the proposal about "inclusiveness"--the cost (both financial and in terms of time away from work) of travelling to two separate conferences will be prohibitive, so only the candidates with the most resources and institutional support will be able to do it). More importantly, I encourage all schools to boycott any alternative hiring convention for these same reasons.
ADDENDUM: Let me comment on one particularly ludicrous reason given for the idea that what the world needs is another hiring convention for aspiring law teachers:
Many schools are “jumping the gun” in the sense that they are actively recruiting candidates well before the AALS recruitment conference. Indeed, some schools hold Skype interviews, invite candidates to campus, and even make offers, outside the AALS time frame. Indeed, some candidates receive multiple offers before the AALS conference. Some of these offers are “exploding offers” which require the applicant to make a decision in a relatively short period of time.
To start, this just isn't true. In a given year, maybe one candidate in the entire market has an offer before the "meat market," if that. More to the point, how in the world would having an earlier hiring convention help with this non-problem? Obviously those looking to "beat the market" would simply accelerate their own process.
ANOTHER: In this article, Prof. Weaver of SEALS admits they are trying to do something "positive" for their "member schools." At least it is now clear this has nothing to do with the job seekers, although how it will be positive for the SEALS schools is mysterious, since those schools will have to send hiring committees to two difference conferences. This really is shameful, and I hope schools hold fast on boycotting this if, in fact, SEALS pursues this foolish and pointless exercise.
August 02, 2018
NALP data: When there are fewer law school graduates, there are fewer law school graduates with jobs (Michael Simkovic)
NALP entry level starting salaries and employment don't predict much of anything about what will happen three to four years from now when those currently contemplating going to law school will, if they choose to attend, graduate into a quite possibly very different economy. Nor is NALP data directionally very different from overall economic data like the employment population ratio which is released sooner.1 And while those graduating into a stronger economy do earn more (at least for the first few years), these cohort effects fade over time, those who graduate in a recession still benefit from their educations, and attempting to time law school is a money-losing proposition because of the opportunity costs of delay.
Nevertheless, every year NALP data on last year's graduating class is released with great fanfare, including a press release. In news that will surprise no one who has tracked the rise in the overall employment population ratio, it turns out that the class of 2017 had better employment outcomes than other classes since the recession. Or as NALP sexes it up for journalists, "Class of 2017 Notched Best Employment Outcomes Since Recession." (88.6% employed 9 months after graduation for the class for 2017, compared with 87.5% for the Class of 2016).
But, NALP unhelpfully informs us, there's a catch--the total number of law jobs for law graduates was lower even though the employment rate was higher.
This should not surprise anyone who is aware that the number of law school matriculants last peaked in 2010, and graduating class sizes have therefore been falling since 2013. From 1994 through 2015, the correlation between annual % change in graduating class size and annual % change in number of law graduates with jobs has been 0.78 (i.e., class size explains 61 percent of the variation in number of law jobs for recent graduates. (data here) The correlation is even higher since 1999 when reporting started covering a higher percent of the class--0.91 correlation, meaning that class size explains 82% of the variation in the number of law graduates with jobs.
There aren't fewer jobs available for lawyers. To the contrary, there are more lawyers working now than there were pre-recession according to both Bureau of Labor Statistics and Census Data (BLS OES, ACS, and CPS). There are fewer recent law graduates working as lawyers because there are fewer recent law graduates.
The employment market for educated workers is large and the number of law graduates is small relative to this market. Law schools are too small to move the market much on the supply side by admitting more or fewer students. Just as the typical investor could sell all of his or her shares of Apple without moving the market for shares of Apple (much less the S&P 500), the typical law school can admit as many or as few students as it wants without changing the overall percent of law graduates who will find jobs. (However, there’s some evidence that at the national level, the share of recent law graduates working as lawyers varies inversely with class size).
The usefulness of NALP data is questionable (at least for many of the uses to which it is often put), but NALP could help by limiting its reporting to employment rates and starting salaries. Discussing changes in the absolute number of law graduates with jobs is simply a confusing ways of telling people that fewer people entered law school 4 years ago than 5 or 6 years ago.
NALP should also contextualize its employment ratios by comparing them to the overall U.S. employment population ratio during the same time period (i.e, March of 2018), which was 60 percent overall, and and 79 percent for those age 25-54 according to BLS and the OECD, compared to 89 percent for recent law graduates, according to NALP.
1 (Similarities are greatest when one restricts it to those who are both young and well-educated using CPS data.
UPDATE: 8/3/2018 The correlations and r-squared were originally reported based on levels rather than % change from previous year. The numbers have been updated to reflect a model based on differencing (% change from prior year), which brings the explanatory power from 1999 forward down from 96 percent to 82 percent.
July 21, 2018
I recently pointed out some factual problems with claims by Northwestern lecturer Mark A. Cohen. Cohen, writing in Forbes, claimed that faculty terminations at Vermont Law School were proof that student debt was unsustainable, not only at Vermont, but at all law schools except for a handful of elite institutions.
Here’s the problem: When student debt levels are unsustainable, student default rates are high. But at Vermont--and at most law schools--default rates are low.
When Professor David Herzig pointed out some of the relevant literature to Mr. Cohen, Cohen responded with the following angry outburst on twitter:
“That "evidence" has been panned by every credible source I know. The methodology and premises upon which the conclusions were drawn are laughable and fly in the face of real studies. I was a bet-the-company trial lawyer for many years--the "study" you cite is 3rd rate fiction.”
Low student loan defaults for law graduates are consistent with the peer reviewed literature, such as The Economic Value of a Law Degree (final version here), Timing Law School (final version here), and related work by me and Frank McIntyre about the value of legal education. Law degrees generally provide benefits that are substantially greater than their costs, even toward the low end of the distribution, across race (final version here), sex and college major, both before and after the financial crisis, and including those who graduate during a recession. More than the top 75 percent of law graduates are getting good value relative to a terminal bachelor’s degree.
Strong student loan performance is also consistent with the After the JD study (compare waves I, II, and especially III), which showed rapid income growth for graduates of even low ranked ABA-approved law schools, and eventually, six-figure median full-time incomes.
Law students’ low default rates have featured in the business strategies of many student lenders, who are eager to refinance law student debt for interest rates substantially below those offered by the federal government.
Professor Herzig asked Mr. Cohen to be more specific about his sources and objections.
Mr. Cohen has yet to specify what he believes is wrong with the methodology in the studies—which were authored with a PhD labor economist, peer reviewed and carefully vetted, use high quality government data, use mainstream methods and assumptions that are well established in labor economics, and include sensitivity analyses and robustness checks. The results have been replicated by other researchers.
Mr. Cohen also has yet to specify which “real studies” he thinks use better data and more widely accepted methods, and why. He has yet to explain how his litigation experience qualifies him as a labor economist, statistician, and literary critic. Or why, as a seasoned litigator, he thinks so many of the lawsuits against law schools have been dismissed.
July 19, 2018
The trouble at Vermont Law School isn't due to "unsustainable" debt levels for students--but it might be because of unsustainable tuition discounting and underinvestment in outreach (Michael Simkovic)
Vermont Law School recently stripped many of its tenured faculty of tenure. A recent article in Forbes by Mark Cohen, a lecturer at Northwestern, claims that Vermont's financial problems are a sign that tuition is too high and student debt is unsustainable.
The data doesn't support his contention. When student debt levels are unsustainable, student default rates are high. But at Vermont--and at most law schools--default rates are low. Vermont Law School's 3-year cohort default rates over the last 3 years available (classes of 2012-2014) are between 0.3 and 1.2 percent, while the national average cohort default default rate across educational institutions is close to 11.5 percent. Nor are Vermont graduates defaulting in large numbers on their Perkins loans. The 2016 default rate, the most recent available, was 3.5 percent for Vermont, versus an average across all educational institutions of around 11.5 percent. Perkins loans are not eligible for Income Based Repayment, so Vermont's relatively strong performance is likely not due too a disproportionately large share of its graduates enrolling in IBR. (Not all Vermont grads will practice law in Vermont, but lawyers in Vermont are actually paid reasonably well--around 120,000 on average according to the BLS).
Vermont Law School's problem is not that tuition is so high that student debt levels are unsustainable relative to students' post graduation income and other financial resources. Rather, Vermont's problem seems to be that there are too few students, and because of aggressive tuition discounting intended to attract them, the students who matriculate are paying too little to make the school financially healthy. Vermont Law School's 2016 529 shows that around 90 percent of incoming students received some scholarship, and half of students receive half tuition scholarships or better.
Vermont Law School could try to respond by offering even more scholarship, but its competitors have deeper pockets, and can outspend Vermont until it runs out of room to maneuver. Escalating a price war that Vermont will surely lose would be foolish. Degrading the quality of its education by relying on more lecturers and adjuncts risks causing a death spiral in which quality, enrollments, reputation, and revenue per student all continue to drop.
To be successful and sustainable in the long run, Vermont may need to find a way to attract students--not just from Vermont, but from across the region--other than offering a cut-rate price. Rather than compete on price, Vermont should find a better way to reach out to those students who are most likely to find Vermont's offerings appealing.
July 13, 2018
Colleges and universities typically pay educated professionals a fraction of what similar individuals earn in the private sector (typically around 60 to 80 cents on the dollar) in return for greater job security and academic freedom. In recent years, some law schools have effectively reneged on this bargain, slashing compensation, de-prioritizing research support and/or accepting outside funding that compromises academic freedom, and terminating even some tenured faculty members.
Recent reports suggest that Vermont Law School has taken this to the extreme.
According to the ABA Journal, Vermont Law School recently stripped tenure from 14 of its 19 tenured professors. This was done without a formal declaration of financial exigency, and according to faculty members and the AAUP, apparently without the consent of faculty members typically required for such decisions.
Professors were reportedly offered severance equal to 6 months salary and health benefits, but only if they agreed to sign a non-disclosure agreement and full release of all legal claims. This package is no more generous than severance pay routinely offered to long-serving (but untenured) employees of for-profit corporations.
June 08, 2018
Apprenticeships and online education are not viable alternatives to ABA-approved law schools (Michael Simkovic)
Over the last several decades, both the cost and the quality of ABA approved law schools have increased. Faculty student ratios have fallen. Completion rates have increased, even as diverse groups with historically lower completion rates have become a larger share of the student body. Earnings premiums have increased, and racial disparities have narrowed.
Nevertheless, some critics of law school, concerned by the high cost, have suggested going back to the "good old days" of legal apprenticeships, or using technology to bring down costs. The data does not support apprenticeships or less highly regulated (and less expensive) online or correspondence versions of law school as viable alternatives to ABA-approved law schools.
Several major legal markets (including New York and California) permit prospective lawyers to sit for the bar exam after 4 years of apprenticeship under a licensed lawyer (or 4 years combined law school and apprenticeship). Very few people still try this approach. But for those who do, the bar passage rates are abysmal.
June 05, 2018
Should law schools pressure their students to go into low paid, thankless public service jobs? (Michael Simkovic)
A recent report by a Harvard law school alumnus, Pete Davis, points out that law schools like Harvard serve the interests of wealthy elites by training primarily future corporate lawyers. (See also here). This is consistent with the available evidence on graduates’ employment, notwithstanding widely publicized—and dubious—claims of law schools being liberal or left-leaning.
Whether or not this is a problem, and whether schools like Harvard should try to do a better job of training future business lawyers or try to steer their students away from business law, is a matter for debate. Davis appears to believe that business lawyers are incapable of serving important collective interests of society—or at least do not do as good of a job as public sector lawyers. According to Davis, law schools therefore have an obligation to discourage students from pursuing careers in business law.
My view is that the path toward resuscitating the public sector will entail convincing the American people to collectively share the burdens of civilization by voting for higher taxes and higher pay for public servants. Until public servants are paid fairly, no one but the very wealthy should feel any obligation to work in the public sector or encourage their students to do so.
I would argue that business lawyers facilitate incredibly important functions in the service of society. Business lawyers help businesses raise the capital they need so that they can serve the basic needs of hundreds of millions or even billions of people. Lawyers also help firms mitigate risks, comply with government regulations and organize tens or even hundreds of thousands employees and suppliers to work together toward a common goal. That is remarkable, and the economic progress that has resulted clearly is in the public interest.
May 26, 2018
Extremely conservative Stanford graduate complains that there aren’t enough extreme conservatives on campus (Michael Simkovic)
Few would consider Stanford University left-wing.
Stanford University hosts the controversial, conservative Hoover Institution. Stanford has raised more than $40 million from conservative donors. Stanford is a major military contractor. Stanford’s last acting president (and long-time provost) argued for affirmative action in hiring in favor of conservative faculty, deploying barely coded, neo-McCarthyist phrases like “the threat from within” to describe liberals on campus. One very prominent Hoover Institution faculty member took the suggestion to heart, asking students affiliated with the College Republicans and Turning Point USA (which maintains "watchlists" of liberal faculty) to help him dig up dirt on a 20 year old Stanford student who the Professor thought was too liberal. (The Professor wanted help "grinding [leftists] down" and wished to "intimidate them.") (See also here, here, here, and here).
Some conservatives want more.
A recent Stanford law graduate and self-described “hard man,” Martin J. Salvucci, writing in the National Review, recently compared Stanford to Czechoslovakia under Soviet domination. Czechoslovakia was invaded by 650,000 heavily armed soldiers from the Soviet Union and other Warsaw pact states in 1968 when Czechoslovakia sought to become Social Democratic rather than Communist (i.e., leftist, but not authoritarian).
The Stanford graduate—who recently worked at Skadden and Klee Tuchin—explains that from his perspective, attending Stanford entailed a level of suffering just like living in a totalitarian satellite state, except that he has “nicer stuff.”
The problem, apparently, is that there are not enough committed right wing ideologues on campus:
"An almost unspoken agreement seems to exist among many students that all of us will soon be fabulously successful, so long as everyone remains a “team player” and nobody rocks the boat too earnestly. Political, moral, and religious convictions are, for the most part, accessories best deployed for instrumental purposes, rather than values to be espoused or explored for their own sake."
If this description is accurate, then it sounds like Stanford law students are well prepared for the restraint and decorum that will be expected of them at the elite law firms, banks, and corporations where many of them aspire to work.
The recent graduate also complains that the Dean of Stanford, M. Elizabeth Magill, has not endorsed his view that there should be an increase in official efforts to promote conservative views on campus. Because of this, he accuses her of being a “gutless bureaucrat.”
Mr. Salvucci’s views highlight that ideology is a matter of perspective. For those who are sufficiently extreme, even a conservative, corporate institution in Silicon Valley, like Stanford, can seem as oppressive as life under Soviet rule.
Given the timing of Mr. Salvucci’s post—after graduation but before admission to the bar—Mr. Salvucci may be attempting to set up a test case to challenge California’s Bar’s character and fitness requirement, which mandates “fairness . . . and respect . . .”
I doubt that the bar will take the bait.
But Mr. Salvucci’s classmates and colleagues may enjoy ribbing him about this for years to come.
 Hoover is a think tank which selects and funds its research fellows based on their ideology and political experience. This is routine in the think tank world, but is widely condemned within academic institutions, which are supposed to select scholars based solely on the merits, regardless of politics.
 The Stanford professor rationalizes these activities by arguing that he was concerned about efforts to schedule counter-programming to compete with controversial political scientist Charles Murray's talk, which resulted in the talk being lightly attended. He goes on to argue that he was defending "free speech"--which to him apparently means shielding conservative speakers from competition for students' attention.
UPDATED 7/2/2018 to include Hoover faculty member Niall Ferguson's efforts to dig up opposition research on liberal students.
May 26, 2018 in Guest Blogger: Michael Simkovic, Law in Cyberspace, Legal Humor, Legal Profession, Ludicrous Hyperbole Watch, Of Academic Interest, Professional Advice, Student Advice, Weblogs | Permalink
May 18, 2018
I recently wrote about the evolution of economics--and law & economics--from fields that focused on assumptions and priors to fields that emphasizes data, causal inference, and scientific objectivity. Many law professors and aspiring academics share my enthusiasm for Albert Einstein's vision of universities as “Temples of Science”, but are unsure of how to acquire or sharpen the technical skills that will make them effective empiricists.
Bernard Black at Northwestern runs extremely helpful and practical summer workshops that I highly recommend. The quality of Professor Black's workshops easily justifies the cost. (There are free law & economics workshops--and some that will even pay you a stipend to attend--but from what I have seen, these tend to present non-empirical methods and political view points).
Details about Professor Black's workshop are available below the break.