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The Allocation of Merit Pay in Academia

Author

Listed:
  • Finn Christensen

    (Department of Economics, Towson University)

  • James Manley

    (Department of Economics, Towson University)

  • Louise Laurence

    (Department of Economics, Towson University)

Abstract

This paper investigates whether the widespread awarding of faculty merit pay at a large public university accurately reflects productivity. We show that pairwise voting on a quality standard by a committee can in theory be consistent with observed allocation patterns. However, the data indicate only nominal adherence to a quality standard. Departments with more severe compression issues are more likely to award merit pay as a countermeasure and some departments appear to be motivated by nonpecuniary incentives. Much of the variance in merit pay allocation remains unexplained. These results suggest reform is needed to improve transparency in the merit system.

Suggested Citation

  • Finn Christensen & James Manley & Louise Laurence, 2010. "The Allocation of Merit Pay in Academia," Working Papers 2010-13, Towson University, Department of Economics, revised Jul 2010.
    • Handle: RePEc:tow:wpaper:2010-13
    as

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    File URL: http://webapps.towson.edu/cbe/economics/workingpapers/2010-13.pdf
    File Function: First version, 2010
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The strange dynamics of faculty merit pay
      by Economic Logician in Economic Logic on 2010-08-20 19:28:00

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    More about this item

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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