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Incentives in academic tenure under asymmetric information

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  • Chen, Zhao
  • Lee, Sang-Ho

Abstract

This paper examines the incentives in academic tenure under asymmetric information where neither types nor actions of the agents are observable. The different contractual forms are compared, including short-term non-tenured contract and tenure contract with or without probationary period. It is shown that tenure track may help reduce information rent for the department in the situation where a smaller portion of high productive researchers are entitled to undertake very costly and time-consuming research project with a high potential value. However, when the probationary period cannot efficiently screen out the low productive researchers, providing both short-term non-tenured contract and tenure contract without probationary period or merely providing short-term non-tenured contract will be more likely taken by department. Therefore, the coexistence of different contractual forms in higher educational system, including the growing use of non-tenure track in some academic sectors can be economically explained.

Suggested Citation

  • Chen, Zhao & Lee, Sang-Ho, 2009. "Incentives in academic tenure under asymmetric information," Economic Modelling, Elsevier, vol. 26(2), pages 300-308, March.
    • Handle: RePEc:eee:ecmode:v:26:y:2009:i:2:p:300-308
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    References listed on IDEAS

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    1. Michael S. McPherson & Morton Owen Schapiro, 1999. "Tenure Issues in Higher Education," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 85-98, Winter.
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    8. Carmichael, H Lorne, 1988. "Incentives in Academics: Why Is There Tenure?," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 453-472, June.
    9. McPherson, Michael S. & Winston, Gordon C., 1983. "The economics of academic tenure : A relational perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 4(2-3), pages 163-184.
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    Cited by:

    1. Muhammad Asali, 2019. "A tale of two tracks," Education Economics, Taylor & Francis Journals, vol. 27(3), pages 323-337, May.
    2. Michael Dinerstein & Isaac M. Opper, 2022. "Screening with Multitasking," CESifo Working Paper Series 9869, CESifo.
    3. Asali, Muhammad, 2018. "A Tale of Two Academic Tracks," IZA Discussion Papers 11423, Institute of Labor Economics (IZA).

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