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Seniority, External Labor Markets, and Faculty Pay

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Abstract
We estimate the returns to seniority (the wage-tenure profile) for university faculty, and the degree to which these returns respond to entry-level salaries (or opportunity wages) a relationship unexplored in work to date. Using data on faculty at a Big Ten university (ours), we estimate elasticities of senior-faculty salaries with respect to entry-level salaries, and find that these elasticities decline with seniority. The evidence both provides an explanation of faculty salary compression and suggests the importance of controlling for entry-level salaries in obtaining estimates of the returns to seniority.
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  • Byron W. Brown & Stephen A. Woodbury, "undated". "Seniority, External Labor Markets, and Faculty Pay," Upjohn Working Papers bbsaw1998, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:bbsaw1998
    Note: Appears in Quarterly Review of Economics and Finance 38(4): 771-798
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    Cited by:

    1. Ward-Warmedinger, Melanie E., 1999. "Salary and the Gender Salary Gap in the Academic Profession," IZA Discussion Papers 64, Institute of Labor Economics (IZA).
    2. Wendy A. Stock & John J. Siegfried, 2006. "Where Are They Now? Tracking the Ph.D. Class of 1997," Southern Economic Journal, John Wiley & Sons, vol. 73(2), pages 472-488, October.
    3. Bernt Bratsberg & James F. Ragan & John T. Warren, 2010. "Does Raiding Explain The Negative Returns To Faculty Seniority?," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 704-721, July.
    4. Ragan Jr, James F. & Warren, John T. & Bratsberg, Bernt, 1999. "How similar are pay structures in 'similar' departments of economics?," Economics of Education Review, Elsevier, vol. 18(3), pages 347-360, June.
    5. Nelson, Paul A. & Monson, Terry, 2006. "Research Funding, Experience, and Seniority in Academia," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 2(1), pages 1-10.
    6. Debra A. Barbezat & James W. Hughes, 2001. "The Effect Of Job Mobility On Academic Salaries," Contemporary Economic Policy, Western Economic Association International, vol. 19(4), pages 409-423, October.
    7. Rob Euwals & Melanie Ward, "undated". "The Remuneration of British Academics," Discussion Papers in Public Sector Economics 00/7, Division of Economics, School of Business, University of Leicester.
    8. Rob Euwals & Melanie Ward, 2005. "What matters most: teaching or research? Empirical evidence on the remuneration of British academics," Applied Economics, Taylor & Francis Journals, vol. 37(14), pages 1655-1672.
    9. Toumanoff, Peter, 2005. "The effects of gender on salary-at-hire in the academic labor market," Economics of Education Review, Elsevier, vol. 24(2), pages 179-188, April.
    10. McDonald, James B. & Sorensen, Jeff, 2017. "Academic salary compression across disciplines and over time," Economics of Education Review, Elsevier, vol. 59(C), pages 87-104.
    11. Ward-Warmedinger, Melanie & Euwals, Rob, 2000. "What Matters Most: Teaching or Research? Empirical Evidence on the Remuneration of British Academics," CEPR Discussion Papers 2628, C.E.P.R. Discussion Papers.
    12. Euwals, Rob & Ward-Warmedinger, Melanie E., 2000. "The Remuneration of British Academics," IZA Discussion Papers 178, Institute of Labor Economics (IZA).
    13. Sun, Minghe, 2002. "A multiple objective programming approach for determining faculty salary equity adjustments," European Journal of Operational Research, Elsevier, vol. 138(2), pages 302-319, April.

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    More about this item

    Keywords

    economists; faculty pay; labor demand;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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