ERIC Number: ED401829
Record Type: Non-Journal
Publication Date: 1995-Jul
Reference Count: N/A
Seniority, External Labor Markets, and Faculty Pay. Staff Working Paper 95-37.
Brown, Byron W.; Woodbury, Stephen A.
This study used 10 years of personnel data of Michigan State University faculty to explore the returns in salary to seniority (the wage-tenure profile) and the degree to which these returns respond to entry-level salaries (or opportunity wages). Elasticities of senior-faculty salaries were estimated with respect to entry-level salaries, and findings indicated that these elasticities declined with seniority. Results suggest that the wage-tenure profile may be sensitive to market conditions at the entry level of each academic field. The evidence provides an explanation of faculty salary compression and suggests the importance of controlling for entry-level salaries in obtaining estimates of the returns to seniority. Tables give data relating to definition of variables, average salaries for faculty, estimated earnings for tenured men and tenured women, returns to seniority and postdoctoral experience, elasticity with respect to entry level salary, and wage-tenure profiles. (Contains 23 references.) (PRW)
Publication Type: Reports - Research; Numerical/Quantitative Data
Education Level: N/A
Authoring Institution: Upjohn (W.E.) Inst. for Employment Research, Kalamazoo, MI.