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Pay Peanuts and Get Monkeys? Evidence From Academia

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  • Boyle, Glenn

Abstract

This article can be found at: The Berkeley Electronic Press Using some unique data from the New Zealand academic system this paper examines the relationship between worker quality and labour market value in a remuneration system that ignores opportunity cost differences. Based on a research assessment exercise undertaken in 2003 I find that the greater the difference between the value of a discipline's outside opportunities and its New Zealand academic salary the weaker its research performance in New Zealand universities. The latter apparently get what they pay for: disciplines in which compensation is lowest relative to opportunity cost are least able to recruit high-quality researchers. Paying peanuts attracts mainly monkeys.

Suggested Citation

  • Boyle, Glenn, 2006. "Pay Peanuts and Get Monkeys? Evidence From Academia," Working Paper Series 3942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
  • Handle: RePEc:vuw:vuwcsr:3942
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    File URL: http://researcharchive.vuw.ac.nz/handle/10063/3942
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    References listed on IDEAS

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    Cited by:

    1. Robert A. Buckle & John Creedy, 2020. "The ‘disciplinary effect’ of the performance-based research fund process in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 54(2), pages 107-126, May.
    2. James Walker & Anna Vignoles & Mark Collins, 2010. "Higher education academic salaries in the UK," Oxford Economic Papers, Oxford University Press, vol. 62(1), pages 12-35, January.
    3. Procter, Roger, 2011. "Echanching Productivity: Towards an Updated Action Agenda," Occasional Papers 11/1, Ministry of Economic Development, New Zealand.
    4. Baris Kaymak & Omer Acikgoz, 2011. "The Rising Skill Premium and Deunionization in the United States," 2011 Meeting Papers 1433, Society for Economic Dynamics.
    5. John Gibson, 2018. "The Micro-Geography of Academic Research:How Distinctive is Economics?," Working Papers in Economics 18/03, University of Waikato.
    6. Ben-David, Dan, 2008. "Brain Drained: A Tale of Two Countries," CEPR Discussion Papers 6717, C.E.P.R. Discussion Papers.
    7. Robert A. Buckle & John Creedy & Norman Gemmell, 2020. "Is external research assessment associated with convergence or divergence of research quality across universities and disciplines? Evidence from the PBRF process in New Zealand," Applied Economics, Taylor & Francis Journals, vol. 52(36), pages 3919-3932, July.
    8. Linus Wilson, 2018. "How to Compare Faculty Pay Across the Business School," Annals of Economics and Finance, Society for AEF, vol. 19(2), pages 591-604, November.
    9. Štěpán Jurajda & Stanislav Kozubek & Daniel Münich & Samuel Škoda, 2017. "Scientific publication performance in post-communist countries: still lagging far behind," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(1), pages 315-328, July.

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