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A theory of tenure-track contracts

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  • Bruce Cater
  • Byron Lew
  • Barry Smith

Abstract

This paper offers an explanation of the use of tenure-track contracts in academia. It argues that, because the results of academic research cannot be sold, a professor's profitability depends on the market value of the instruction he or she provides. But because that value depends directly on the extent of his or her observable research accomplishments, a profit-maximizing university will dismiss a professor who fails to initially establish a strong research record, but will tolerate a professor who fails to augment a record that is already strong.

Suggested Citation

  • Bruce Cater & Byron Lew & Barry Smith, 2008. "A theory of tenure-track contracts," Education Economics, Taylor & Francis Journals, vol. 16(2), pages 203-218.
    • Handle: RePEc:taf:edecon:v:16:y:2008:i:2:p:203-218
    DOI: 10.1080/09645290801939629
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    References listed on IDEAS

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    1. Siow, Aloysius, 1997. "Some evidence on the signalling role of research in academia," Economics Letters, Elsevier, vol. 54(3), pages 271-276, July.
    2. Carmichael, H Lorne, 1988. "Incentives in Academics: Why Is There Tenure?," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 453-472, June.
    3. Rothschild, Michael & White, Lawrence J, 1995. "The Analytics of the Pricing of Higher Education and Other Services in Which the Customers Are Inputs," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 573-586, June.
    4. James Monks & Michael Robinson, 2001. "The Returns to Seniority in Academic Labor Markets," Journal of Labor Research, Transaction Publishers, vol. 22(2), pages 415-427, April.
    5. Barbezat, Debra A. & Donihue, Michael R., 1998. "Do faculty salaries rise with job seniority?," Economics Letters, Elsevier, vol. 58(2), pages 239-244, February.
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    Cited by:

    1. Muhammad Asali, 2019. "A tale of two tracks," Education Economics, Taylor & Francis Journals, vol. 27(3), pages 323-337, May.
    2. Klaus Beckmann & Andrea Schneider, 2013. "The interaction of publications and appointments: new evidence on academic economists in Germany," Education Economics, Taylor & Francis Journals, vol. 21(4), pages 415-430, September.
    3. Cater, Bruce & Lew, Byron & Pivato, Marcus, 2009. "Why tenure?," MPRA Paper 14823, University Library of Munich, Germany.

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    Keywords

    research; instruction; tenure;
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