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Salary Dispersion, Location in the Salary Distribution, and Turnover among College Administrators

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  • Jeffrey Pfeffer
  • Alison Davis-Blake

Abstract

This paper examines how the amount of dispersion in an organization's salary distribution and an individual's location in that distribution affect turnover. Using data for the years 1978–79 and 1983–84 on more than 10,000 administrators in 821 U.S. colleges and universities, the authors find that salary dispersion negatively affected the turnover of administrators with relatively high salaries and positively affected the turnover of those with relatively low salaries. The joint effect of salary dispersion and relative salary on turnover was strengthened when salary information was publicly available and when a well-developed external labor market was present.

Suggested Citation

  • Jeffrey Pfeffer & Alison Davis-Blake, 1992. "Salary Dispersion, Location in the Salary Distribution, and Turnover among College Administrators," ILR Review, Cornell University, ILR School, vol. 45(4), pages 753-763, July.
    • Handle: RePEc:sae:ilrrev:v:45:y:1992:i:4:p:753-763
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    Cited by:

    1. Christian Grund & Niels Westergaard-Nielsen, 2008. "The Dispersion of Employees' Wage Increases and Firm Performance," ILR Review, Cornell University, ILR School, vol. 61(4), pages 485-501, July.
    2. Chris Riddell, 2011. "Compensation Policy and Quit Rates: A Multilevel Approach Using Benchmarking Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 50(4), pages 656-677, October.
    3. Sun, Sophia Li & Habib, Ahsan & Huang, Hedy Jiaying, 2019. "Tournament incentives and stock price crash risk: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 54(C), pages 93-117.
    4. James B. Wade & Charles A. O'Reilly & Timothy G. Pollock, 2006. "Overpaid CEOs and Underpaid Managers: Fairness and Executive Compensation," Organization Science, INFORMS, vol. 17(5), pages 527-544, October.
    5. Sherae Daniel & Ritu Agarwal & Katherine J. Stewart, 2013. "The Effects of Diversity in Global, Distributed Collectives: A Study of Open Source Project Success," Information Systems Research, INFORMS, vol. 24(2), pages 312-333, June.
    6. Jeffrey Pfeffer, 2007. "Human Resources from an Organizational Behavior Perspective: Some Paradoxes Explained," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 115-134, Fall.

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