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The Hedonic Price Structure Of Faculty Compensation At U.S. Colleges And Universities

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  • David E. Clark

    (Marquette University)

  • Thomas A. Knapp

    (Pennsylvania State University-Wilkes Barre)

Abstract

Economic theory suggests that the variation in academic salaries across institutions in part reflects compensating differences associated with variation in the levels of local "quality of life" factors such as environmental quality and the provision of local public services. This paper presents an econometric analysis of the hedonic, or implicit price structure, of faculty compensation at U.S. colleges and universities using data from AAUP merged with data on a host of location-specific characteristics. Quality of life factors are found to be important, accounting for between 7 percent and 12.8 percent of total compensation.

Suggested Citation

  • David E. Clark & Thomas A. Knapp, 1995. "The Hedonic Price Structure Of Faculty Compensation At U.S. Colleges And Universities," The Review of Regional Studies, Southern Regional Science Association, vol. 25(2), pages 117-141, Fall.
    • Handle: RePEc:rre:publsh:v:25:y:1995:i:2:p:117-141
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    Cited by:

    1. Zoghi, Cindy, 2003. "Why have public university professors done so badly?," Economics of Education Review, Elsevier, vol. 22(1), pages 45-57, February.
    2. David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury.
    3. Stephan J. Goetz & Anil Rupasingha, 2003. "The Returns on Higher Education: Estimates for the 48 Contiguous States," Economic Development Quarterly, , vol. 17(4), pages 337-351, November.

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