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The Remuneration of British Academics

Author

Listed:
  • Euwals, Rob

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ward-Warmedinger, Melanie E.

    (European Central Bank)

Abstract

This paper examines both pay relativities and mechanisms for pay determination within the UK academic labour market drawing upon a particularly detailed data set of 635 academics from five traditional Scottish Universities. In the existing literature, the fact that in many occupations, employees are paid according to explicitly determined wage scales is mostly ignored. We employ salary, grade and spinal point information to incorporate the fixed framework of academic salaries into analysis. Our results outline the importance of individual productivity, measured through publication, grant receipt and teaching skill, in attracting financial reward. We find a large penalty associated with time out of the profession and evidence for the deregulation of established pay and promotion structures. In order to identify those academics most likely to leave the profession, analysis also considers the determinants of individuals’ reservation and deserved salary. Controlling for individual characteristics we find that lecturers hold the lowest reservation salaries in relation to their current salary level. The academic profession is therefore most at risk from loosing its staff at this grade. We find however no (self-)selection on the basis of the productivity of individuals.

Suggested Citation

  • Euwals, Rob & Ward-Warmedinger, Melanie E., 2000. "The Remuneration of British Academics," IZA Discussion Papers 178, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp178
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    References listed on IDEAS

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    1. Brown, Byron W. & Woodbury, Stephen A., 1998. "Seniority, external labor markets, and faculty pay," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(4), pages 771-798.
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    9. 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.
    10. Melanie E. Ward & Peter J. Sloane, 2000. "Non‐pecuniary Advantages Versus Pecuniary Disadvantages; Job Satisfaction Among Male And Female Academics In Scottish Universities," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(3), pages 273-303, August.
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    Cited by:

    1. Alexis Walckiers, 2008. "Multi-dimensional contracts with task-specific productivity: an application to universities," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 165-198, April.
    2. Mareva Sabatier, 2010. "Do female researchers face a glass ceiling in France? A hazard model of promotions," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 2053-2062.

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    More about this item

    Keywords

    Academic labour market; salary; salary scales;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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