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ERIC Number: ED360912
Record Type: Non-Journal
Publication Date: 1993-May
Pages: 22
Abstractor: N/A
Reference Count: N/A
ISBN: N/A
ISSN: N/A
Cost of Living and Taxation Adjustments in Salary Comparisons. AIR 1993 Annual Forum Paper.
Zeglen, Marie E.; Tesfagiorgis, Gebre
This study examined faculty salaries at 50 higher education institutions using methods to adjust salaries for geographic differences, cost of living, and tax burdens so that comparisons were based on real rather than nominal value of salaries. The study sample consisted of one public doctorate granting institution from each state and used salary data from the 1991-92 annual survey by the American Association of University Professors. The analysis was limited to the salaries of full professors, since individuals at the senior level were assumed to be full participants in the local economy. The study used the American Chamber of Commerce Researchers Association (ACCRA) index for cost of living and an individual tax model created for the study to estimate tax adjustments. The main finding of the study was that rankings of faculty salaries among institutions differ substantially when adjustments are made for both cost of living and taxation differences. Rankings were more affected by cost of living differences than taxation though taxation was also an important factor for institutions in states with either very high or very low rates of taxation. The findings suggested that achieving equilibrium with the local economic environment may be at least as important as achieving parity with peer institutions in other locales. (Contains 15 references.) (JB)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Audience: Researchers
Language: English
Sponsor: N/A
Authoring Institution: N/A