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Negotiation and bargaining power in the determination of administrative wages in academe

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  • João Ricardo Faria
  • Steven B. Caudill
  • Daniel M. Gropper
  • Franklin G. Mixon

Abstract

We develop a sequential game representing bargaining between a public university and a professor over a vacant administrative position, such as an academic deanship. We find that the administrative salary is an increasing function of the job candidate's salary, the prior dean's salary, the price of undergraduate courses, elasticity of the wage differential, and faculty productivity. The game also indicates that if the new dean is female or minority, and if the previous dean's salary is important, then one can conclude that the professor is able to circumvent wage discrimination given that the salaries of public university officials are publicly available.

Suggested Citation

  • João Ricardo Faria & Steven B. Caudill & Daniel M. Gropper & Franklin G. Mixon, 2022. "Negotiation and bargaining power in the determination of administrative wages in academe," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2935-2940, October.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:7:p:2935-2940
    DOI: 10.1002/mde.3573
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    References listed on IDEAS

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    1. João R. Faria & Paulo R. A. Loureiro & Franklin G. Mixon & Adolfo Sachsida, 2016. "Minority Faculty Hiring Power in Academe: an Economic Model," The Review of Black Political Economy, Springer;National Economic Association, vol. 43(3), pages 273-288, December.
    2. Olivia Hebner & Courtney Collins & Franklin Mixon, 2018. "Do Gender and Race Play a Role in the Compensation of University Presidents? Evidence from Institution-level Panel Data," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 21(1), pages 1-20.
    3. David Blackaby & Alison L Booth & Jeff Frank, 2005. "Outside Offers And The Gender Pay Gap: Empirical Evidence From the UK Academic Labour Market," Economic Journal, Royal Economic Society, vol. 115(501), pages 81-107, February.
    4. João Ricardo Faria & Franklin G. Mixon, 2020. "The Peter and Dilbert Principles applied to academe," Economics of Governance, Springer, vol. 21(2), pages 115-132, June.
    5. Takahashi, Ana Maria & Takahashi, Shingo, 2011. "Gender salary differences in economics departments in Japan," Economics of Education Review, Elsevier, vol. 30(6), pages 1306-1319.
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    8. João Ricardo Faria & Paulo R.A. Loureiro & Franklin G. Mixon, Jr. & Adolfo Sachsida, 2013. "Faculty Promotion in Academe: Theory and Evidence from U.S. Economics Departments," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(1), pages 1-27.
    9. Franklin Mixon & Len Trevino, 2005. "Is there gender discrimination in named professorships? An econometric analysis of economics departments in the US South," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 849-854.
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    14. Toutkoushian, Robert K., 1998. "Sex Matters Less for Younger Faculty: Evidence of Disaggregate Pay Disparities from the 1988 and 1993 NCES Surveys," Economics of Education Review, Elsevier, vol. 17(1), pages 55-71, February.
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    19. João Ricardo Faria & Daniel M. Gropper & Franklin G. Mixon & Julissa Y. Santoyo, 2019. "Academic scholarship, organization prestige, and the earnings of U.S. business school deans," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 40(7), pages 823-837, October.
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    1. Faria, João Ricardo & Goel, Rajeev K. & Manage, Neela D., 2023. "The path of economics research production: Insights into the seesaw between theory and empirics," Kiel Working Papers 2238, Kiel Institute for the World Economy (IfW Kiel).

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