The Allocation of Merit Pay in Academia: A Case Study
AbstractThis 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.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 31 (2011)
Issue (Month): 2 ()
Contact details of provider:
merit; faculty compensation;
Find related papers by JEL classification:
- I2 - Health, Education, and Welfare - - Education
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
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