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Faculty Salaries in Ontario: Compression, Inversion, and the Effects of Alternative Forms of Representation

  • Felice Martinello

The author estimates the incidence of salary compression and inversion, and the effects of different forms of collective representation (unions and special plans, with and without binding arbitration), for faculty at Ontario universities over the 1970–2004 period. The data show large decreases in the salary differential between full and associ¬ate professors and severe compression and inversion in age-salary profiles in the 2000s. Union representation had no effect on salaries compared to no formal representation. Special plans without binding arbitration led to lower salaries, while special plans with binding arbitration yielded higher salaries, but all of the estimated effects were small. Average salaries were lower the higher the proportion of female faculty in the 1970s, but this effect became statistically insignificant by the early 1990s. Finally, faculty salaries responded to the cost of living in the university’s city, and were higher, on average, in universities with higher average research productivity.

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Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 63 (2009)
Issue (Month): 1 (October)
Pages: 128

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Handle: RePEc:ilr:articl:v:63:y:2009:i:1:p:128
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  1. Hansen, W Lee & Weisbrod, Burton A & Strauss, Robert P, 1978. "Modeling the Earnings and Research Productivity of Academic Economists," Journal of Political Economy, University of Chicago Press, vol. 86(4), pages 729-41, August.
  2. Byron W. Brown & Stephen A. Woodbury, 1995. "Seniority, External Labor Markets, and Faculty Pay," Upjohn Working Papers and Journal Articles 95-37, W.E. Upjohn Institute for Employment Research.
  3. Rees, D.I. & Kumar, P. & Fisher, D.W., 1993. "Unionization and Faculty Salaries in Canada," Papers 1993-10, Queen's at Kingston - Sch. of Indus. Relat. Papers in Industrial Relations.
  4. Casey Warman & Frances Woolley & Christopher Worswick, 2006. "The Evolution of Male-Female Wages Differentials in Canadian Universities: 1970-2001," Working Papers 1099, Queen's University, Department of Economics.
  5. Felice Martinello, 2006. "University Revenues and Faculty Salaries in Ontario: 1970/71­2003/04," Canadian Public Policy, University of Toronto Press, vol. 32(4), pages 349-372, December.
  6. Arthur Hosios & Aloysius Siow, 2004. "Unions without rents: the curious economics of faculty unions," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 28-52, February.
  7. Daniel I. Rees & Dorothy Fisher & Pradeep Kumar, 1995. "The salary effect of faculty unionism in Canada," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(3), pages 441-451, April.
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