IDEAS home Printed from https://ideas.repec.org/a/eee/ecoedu/v49y2015icp42-54.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0272775715001041
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econedurev.2015.08.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John J. Cheslock & Matt Gianneschi, 2008. "Replacing State Appropriations with Alternative Revenue Sources: The Case of Voluntary Support," The Journal of Higher Education, Taylor & Francis Journals, vol. 79(2), pages 208-229, March.
    2. Kim, E. Han & Morse, Adair & Zingales, Luigi, 2009. "Are elite universities losing their competitive edge?," Journal of Financial Economics, Elsevier, vol. 93(3), pages 353-381, September.
    3. Jeffrey R. Brown & Stephen G. Dimmock & Jun-Koo Kang & Scott J. Weisbenner, 2014. "How University Endowments Respond to Financial Market Shocks: Evidence and Implications," American Economic Review, American Economic Association, vol. 104(3), pages 931-962, March.
    4. David Card & Alex Mas & Enrico Moretti & Emmanuel Saez, 2010. "Inequality at Work: The Effect of Peer Salaries on Job Satisfaction," Working Papers 1269, Princeton University, Department of Economics, Industrial Relations Section..
    5. David Card & Alexandre Mas & Enrico Moretti & Emmanuel Saez, 2012. "Inequality at Work: The Effect of Peer Salaries on Job Satisfaction," American Economic Review, American Economic Association, vol. 102(6), pages 2981-3003, October.
    6. Ehrenberg, Ronald & Kasper, Hirschel & Rees, Daniel, 1991. "Faculty turnover at American colleges and universities: Analyses of AAUP data," Economics of Education Review, Elsevier, vol. 10(2), pages 99-110, June.
    7. Ransom, Michael R, 1993. "Seniority and Monopsony in the Academic Labor Market," American Economic Review, American Economic Association, vol. 83(1), pages 221-233, March.
    8. Zoghi, Cindy, 2003. "Why have public university professors done so badly?," Economics of Education Review, Elsevier, vol. 22(1), pages 45-57, February.
    9. Scott E. Carrell & James E. West, 2010. "Does Professor Quality Matter? Evidence from Random Assignment of Students to Professors," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 409-432, June.
    10. Ronald G. Ehrenberg & Liang Zhang, 2005. "The changing nature of faculty employment," Chapters, in: Robert L. Clark & Jennifer Ma (ed.), Recruitment, Retention and Retirement in Higher Education, chapter 3, Edward Elgar Publishing.
    11. Eric P. Bettinger & Bridget Terry Long, 2010. "Does Cheaper Mean Better? The Impact of Using Adjunct Instructors on Student Outcomes," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 598-613, August.
    12. James Monks, 2007. "The Relative Earnings of Contingent Faculty in Higher Education," Journal of Labor Research, Springer, vol. 28(3), pages 487-501, July.
    13. Gordon C. Winston, 2004. "Differentiation Among US Colleges and Universities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(4), pages 331-354, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Frode Eika Sandnes, 2018. "Do Norwegian academics who publish more earn higher salaries?," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(1), pages 263-281, April.
    2. Zhang, Liang & Ehrenberg, Ronald G. & Liu, Xiangmin, 2015. "Changing Faculty Employment at Four-Year Colleges and Universities in the United States," IZA Discussion Papers 9595, Institute of Labor Economics (IZA).
    3. Ádám Kun, 2018. "Publish and Who Should Perish: You or Science?," Publications, MDPI, vol. 6(2), pages 1-16, April.
    4. Ozan Jaquette & Bradley R. Curs, 2023. "Enrollment Growth and Faculty Hiring at Public Research Universities," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(3), pages 349-378, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2019. "Public Universities: The Supply Side of Building a Skilled Workforce," NBER Working Papers 25945, National Bureau of Economic Research, Inc.
    2. Brade, Raphael & Himmler, Oliver & Jäckle, Robert, 2018. "Normatively Framed Relative Performance Feedback – Field Experiment and Replication," MPRA Paper 88830, University Library of Munich, Germany.
    3. Ozan Jaquette & Bradley R. Curs, 2023. "Enrollment Growth and Faculty Hiring at Public Research Universities," Research in Higher Education, Springer;Association for Institutional Research, vol. 64(3), pages 349-378, May.
    4. Elizabeth Lyons & Laurina Zhang, 2023. "Salary transparency and gender pay inequality: Evidence from Canadian universities," Strategic Management Journal, Wiley Blackwell, vol. 44(8), pages 2005-2034, August.
    5. Francesco Capozza & Ingar Haaland & Christopher Roth & Johannes Wohlfart, 2021. "Studying Information Acquisition in the Field: A Practical Guide and Review," CEBI working paper series 21-15, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    6. Cardoso, Ana Rute, 2012. "Money and rank in the labor market," Economics Letters, Elsevier, vol. 115(2), pages 325-328.
    7. Yamada, Katsunori & Sato, Masayuki, 2013. "Another avenue for anatomy of income comparisons: Evidence from hypothetical choice experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 35-57.
    8. Thorvaldur Gylfason, 2019. "Inequality Undermines Democracy and Growth," CESifo Working Paper Series 7486, CESifo.
    9. Amrei Lahno & Marta Serra-Garcia, 2015. "Peer effects in risk taking: Envy or conformity?," Journal of Risk and Uncertainty, Springer, vol. 50(1), pages 73-95, February.
    10. Maida, Agata & Pezone, Vincenzo, 2024. "CEO Pay Disclosure and Within-Firm Wage Inequality," IZA Discussion Papers 17243, Institute of Labor Economics (IZA).
    11. Hoffman, Mitchell & Burks, Stephen V., 2017. "Worker Overconfidence: Field Evidence and Implications for Employee Turnover and Returns from Training," IZA Discussion Papers 10794, Institute of Labor Economics (IZA).
    12. Xiaogeng Xu & Satu Metsälampi & Michael Kirchler & Kaisa Kotakorpi & Peter Hans Matthews & Topi Miettinen, 2023. "Which income comparisons matter to people, and how? Evidence from a large field experiment," Working Papers 10, Finnish Centre of Excellence in Tax Systems Research.
    13. Feld, Jan & Salamanca, Nicolás & Zölitz, Ulf, 2019. "Students are almost as effective as professors in university teaching," Economics of Education Review, Elsevier, vol. 73(C).
    14. repec:spo:wpmain:info:hdl:2441/vbu6kd1s68o6r34k5bcm3iopv is not listed on IDEAS
    15. Scott E. Carrell & Michal Kurlaender, 2023. "My Professor Cares: Experimental Evidence on the Role of Faculty Engagement," American Economic Journal: Economic Policy, American Economic Association, vol. 15(4), pages 113-141, November.
    16. Simon Jäger & Christopher Roth & Nina Roussille & Benjamin Schoefer, 2024. "Worker Beliefs About Outside Options," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1505-1556.
    17. Van Landeghem, Bert & Vandeplas, Anneleen, 2018. "The relationship between status and happiness: Evidence from the caste system in rural India," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 62-71.
    18. Pieter De Vlieger & Brian Jacob & Kevin Stange, 2018. "Measuring Instructor Effectiveness in Higher Education," NBER Chapters, in: Productivity in Higher Education, pages 209-258, National Bureau of Economic Research, Inc.
    19. Lahno, Amrei M. & Serra-Garcia, Marta, 2012. "Peer Effects in Risk Taking," Discussion Papers in Economics 14309, University of Munich, Department of Economics.
    20. Sliwka, Dirk & Werner, Peter, 2016. "How Do Agents React to Dynamic Wage Increases? An Experimental Study," IZA Discussion Papers 9855, Institute of Labor Economics (IZA).
    21. Aart Gerritsen & Harald W. Lang, 2018. "Hirschman's tunnel effect goes abroad: International dimensions of social comparison and subjective well-being," Working Papers tax-mpg-rps-2018-02, Max Planck Institute for Tax Law and Public Finance.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:49:y:2015:i:c:p:42-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/econedurev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.