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Activity Number: 706
Type: Contributed
Date/Time: Thursday, August 4, 2016 : 10:30 AM to 12:20 PM
Sponsor: Business and Economic Statistics Section
Abstract #318892 View Presentation
Title: Academic Salary Compression Across Disciplines and Over Time
Author(s): James McDonald* and Jeff T. Sorensen
Companies: Brigham Young University and University of California at Berkeley
Keywords: Faculty salaries ; order statistics ; Dagum distribution ; stochastic dominance

Academic salary compression occurs when professors of one professorial rank earn salaries close to-or even higher than-salaries of more senior faculty. We analyze data on faculty salaries from 1993-2015 for 15 disciplines to see which disciplines have been most affected by salary compression. We calculate and analyze mean-based compression ratios and explore stochastic dominance relationships between estimated Dagum salary distributions. Although academic salary compression is not seen in most disciplines, it is common in business-related fields, has been increasing in these disciplines, and exhibits examples of stochastic dominance. Also, salary compression increases as competing nonacademic salaries increase.

Authors who are presenting talks have a * after their name.

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