Yale recently reclassified economics as a STEM (science, technology, engineering, and math), and other schools may follow suit. It’s a public-spirited regulatory arbitrage–by reclassifying to “Econometric and Quantitative Economics” they make it easier for international students to continue working in the U.S. after graduation. But by capitulating to regulatory nonsense, they’re sacrificing the long-run vitality of the field.
Here’s how this whole classification thing works: Immigration and Customs Enforcement (ICE) has a “STEM Designated Degree Program List” that specifies which programs on the Department of Education’s list of degree programs qualify as STEM. Students with degrees in these fields get special status as far as immigration. ICE’s list includes (among others) several psychology programs and three social science programs: Archaeology; Cyber/Computer Forensics and Counterterrorism; and Econometrics and Quantitative Economics.
What can we infer from this? That the feds are defining STEM narrowly, with a greater emphasis on engineering than science. STEM is about training people to do science-y work with practical applications. Basic research gets lip service, but only really matters so far as it’s likely to have clear applications in the future.
Economics has some parts that fit into such a view of STEM. Even I’ll admit (controversially for Austrians and Anarcho-Capitalists) that positive-sum social engineering a) is possible (in modest increments), and b) has something to learn from economics. But to include all of econ in STEM would require using a broader definition of STEM.
So what’s the upshot? High profile departments will focus more on a narrower part of economics pushing much of the field to the periphery. This is a retreat into more isolated academic silos. “Economics, general” leaves a vague space around a department, but taking a more specific designation means they can be held to more specific expectations. It might have little impact on the day-to-day life of a department, but in the long run they’re hamstringing themselves.
The problem these departments are trying to address is that ICE has too much power. But by playing this game they’re letting ICE play central planner in the education industry!