The Price of COVID-19 Risk In A Public University

Wow. Duha Altindag, Samuel Cole and R. Alan Seals Jr, three professors in the economics department at Auburn University, study their own university’s COVID policies. The administration defied the Alabama Governor’s public health order on social distancing and created their own policy which caused enrollment in about half of the face-to-face classes to exceed legal limits. Professors assigned to teach these riskier classes were less powerful, albeit they were paid more to take on the risk. I am told that the administration is not happy. I hope the authors have tenure.

We study a “market” for occupational COVID-19 risk at Auburn University, a large public school in the US. The university’s practices in Spring 2021 caused approximately half of the face-to-face classes to have enrollments above the legal capacity allowed by state law, which followed CDC’s social distancing guidelines. Our results suggest that the politically less powerful instructors, such as graduate student teaching assistants and adjunct instructors, as well as women, were systematically recruited to deliver their courses in riskier classrooms. Using the dispersibility of each class as an instrument for classroom risk, our IV estimates obtained from hedonic wage regressions show that instructors who taught at least one risky class were paid more than those who exclusively taught safe courses. We estimate a COVID-19 risk premium of $8,400 per class.


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