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Changing salary structure and faculty composition within business schools: Differences across sectors and state funding levels

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  • Cheslock, John J.
  • Callie, Trina M.

Abstract

We employ new data to examine how public higher education institutions adjusted the salaries and composition of their business faculty during a financially challenging period. The data's multilevel structure allows us to describe changes in between-institution inequality, within-institution inequality, and their interaction. To examine the role of finances, we compare public and private institutions and employ difference and fixed-effects models to study the effect of state appropriations. Our results indicate that financially stressed publics almost matched the salary increases of their competitors between 1999 and 2006, but reductions in the number of professorsespecially full professorsaccompanied this salary growth. The salary gap across public institutions increased, while within institutions, salary compression and salary inequality within rank grew.

Suggested Citation

  • Cheslock, John J. & Callie, Trina M., 2015. "Changing salary structure and faculty composition within business schools: Differences across sectors and state funding levels," Economics of Education Review, Elsevier, vol. 49(C), pages 42-54.
    • Handle: RePEc:eee:ecoedu:v:49:y:2015:i:c:p:42-54
    DOI: 10.1016/j.econedurev.2015.08.001
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    References listed on IDEAS

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    More about this item

    Keywords

    Faculty salaries; Salary wage differentials; State and federal aid; Resource allocation;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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