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Pay Peanuts and Get Monkeys? Evidence from Academia

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  • Boyle Glenn

    (NZ Institute for the Study of Competition and Regulation, Victoria University of Wellington)

Abstract

In most countries, academic pay is independent of discipline, thus ignoring differences in labor market opportunities. Using some unique data from a comprehensive research assessment exercise undertaken in one such country -- New Zealand -- this paper examines the impact of discipline-independent pay on research quality. 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 opportunity cost is highest relative to the fixed compensation are least able to recruit high-quality researchers. Paying peanuts attracts mainly monkeys.

Suggested Citation

  • Boyle Glenn, 2008. "Pay Peanuts and Get Monkeys? Evidence from Academia," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-26, July.
    • Handle: RePEc:bpj:bejeap:v:8:y:2008:i:1:n:21
    DOI: 10.2202/1935-1682.1976
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    References listed on IDEAS

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    Cited by:

    1. Robert A. Buckle & John Creedy & Ashley Ball, 2021. "Fifteen Years of a PBRFS in New Zealand: Incentives and Outcomes," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(2), pages 208-230, June.
    2. Robert A. Buckle & John Creedy & Norman Gemmell, 2022. "Sources of convergence and divergence in university research quality: evidence from the performance-based research funding system in New Zealand," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(6), pages 3021-3047, June.
    3. 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.
    4. 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.
    5. Robert A. Buckle & John Creedy & Ashley Ball, 2021. "Fifteen Years of a PBRFS in New Zealand: Incentives and Outcomes," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(2), pages 208-230, June.
    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, 2022. "Sources of convergence and divergence in university research quality: evidence from the performance-based research funding system in New Zealand," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(6), pages 3021-3047, June.
    8. 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.
    9. 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.
    10. Buckle, Robert A. & Creedy, John & Ball, Ashley, 2020. "A Schumpeterian Gale: Using Longitudinal Data to Evaluate Responses to Performance-Based Research Funding Systems," Working Paper Series 9447, Victoria University of Wellington, Chair in Public Finance.
    11. Procter, Roger, 2011. "Echanching Productivity: Towards an Updated Action Agenda," Occasional Papers 11/1, Ministry of Economic Development, New Zealand.
    12. Baris Kaymak & Omer Acikgoz, 2011. "The Rising Skill Premium and Deunionization in the United States," 2011 Meeting Papers 1433, Society for Economic Dynamics.
    13. 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.
    14. 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.
    15. John Gibson, 2021. "The micro‐geography of academic research: How distinctive is economics?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(4), pages 467-484, September.
    16. 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.
    17. Buckle, Robert A. & Creedy, John & Ball, Ashley, 2020. "A Schumpeterian Gale: Using Longitudinal Data to Evaluate Responses to Performance-Based Research Funding Systems," Working Paper Series 21104, Victoria University of Wellington, Chair in Public Finance.
    18. Robert A. Buckle & John Creedy, 2022. "Methods to evaluate institutional responses to performance‐based research funding systems," Australian Economic Papers, Wiley Blackwell, vol. 61(3), pages 615-634, September.

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