“For Ms. Bonilla, the result is an hourly wage of more than $25. Adding the money from a part-time job cooking at a student dorm, most weeks she earns more than $1,500. That exceeds the typical weekly pay of a worker with a master’s degree. Adding in the wage of Mr. Villatoro, also a cook at the business school, the family earns almost $120,000 a year.”
Students forced the university to shield campus workers from outsourcing’s impact on pay. But as a model, the policy challenges some economic axioms.