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The Allocation of Merit Pay in Academia: A Case Study

Author

Listed:
  • Finn Christensen

    (Towson University)

  • James Manley

    (Towson University)

  • Louise Laurence

    (Towson University)

Abstract

This paper investigates whether the widespread awarding of faculty merit pay at a large public university accurately reflects productivity. We show that pairwise voting on a quality standard by a committee can in theory be consistent with observed allocation patterns. However, the data indicate only nominal adherence to a quality standard. Departments with more severe compression issues are more likely to award merit pay as a countermeasure and some departments appear to be motivated by nonpecuniary incentives. Much of the variance in merit pay allocation remains unexplained. These results suggest reform is needed to improve transparency in the merit system.

Suggested Citation

  • Finn Christensen & James Manley & Louise Laurence, 2011. "The Allocation of Merit Pay in Academia: A Case Study," Economics Bulletin, AccessEcon, vol. 31(2), pages 1548-1562.
    • Handle: RePEc:ebl:ecbull:eb-11-00028
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    merit; faculty compensation;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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