When employers are forced to raise one form of compensation, they often find other places to cut.
Don’t get so excited yet about all the news of rising wages for college athletes and workers. The increases often mask other cuts in compensation.
Last week the U.S. Supreme Court made a decision that may change college sports. The judges ruled that the National Collegiate Athletic Association can’t act as a cartel to restrict how student athletes are paid. It means athletes may be paid in new ways — so long as the compensation is related to their education. Things like semesters abroad, internships and even money for graduate school are now on the table. The ruling also opens the door to future lawsuits, which could mean cash payments are next. It's seen as a win for players, but it may be a pyrrhic victory, because as we’ve seen in other jobs, often when regulation expands or changes how workers are compensated, something else gets taken away.
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
This piece originally appeared in Bloomberg Opinion