AbstractAcademic research is a public good whose production is supported by the tuition-paying students that a faculty's research accomplishments attract. A professor's spot contribution to the university's revenues thus depends not on her spot research production, but rather on her cumulative research record. We show that a profit-maximizing university will apply a `high' minimum retention standard to the production of a junior professor who has no record of past research, but a `zero' retention standard to the spot production of a more senior professor whose background includes accomplishments sufficient to have cleared the `high' probationary hurdle.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 14823.
Date of creation: 17 Jan 2009
Date of revision:
academic tenure; labour contract; up-or-out;
Find related papers by JEL classification:
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-02 (All new papers)
- NEP-EDU-2009-05-02 (Education)
- NEP-IPR-2009-05-02 (Intellectual Property Rights)
- NEP-LAB-2009-05-02 (Labour Economics)
- NEP-SOG-2009-05-02 (Sociology of Economics)
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