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Rent seeking implications for salary increments in academe

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  • Stolen, Justin D
  • Gleason, John M

Abstract

In many environments, salary increments consist of two parts: an 'across the board' component and a 'merit' component. These increments are usually funded from a wages pool which rarely bears any relationship to overall increases in productivity. The resulting competition for limited monies results in two forms of behavior: productive and predatory (or rent seeking). This paper develops a model which considers institutionally controllable variables and their influence on these behaviors in an academic environment. It is found that an increase in a wages fund will not necessarily lead to an increase in either total or productive faculty effort.

Suggested Citation

  • Stolen, Justin D & Gleason, John M, 1984. "Rent seeking implications for salary increments in academe," Omega, Elsevier, vol. 12(5), pages 485-488.
    • Handle: RePEc:eee:jomega:v:12:y:1984:i:5:p:485-488
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