Salary Determinants of Entry Level Academic Economists and the Characteristics of Those Hired on the Tenure Track

Abstract

This paper examines the characteristics of entry level academic economists and investigates the determinants of market salaries. Contrary to what might be expected, we find that nominal salaries are not systematically adjusted to reflect observable differences in the cost of living. Our findings reveal that being hired on the tenure track significantly influence academic salaries regardless of departmental ranking. After analyzing the factors that influence salaries, we analyze the impact that observable characteristics have on the probability of being hired into tenure track positions. Completing a Ph.D. degree, being hired at a public university, and receiving a degree from a highly ranked department were found to be significant characteristics of those hired into tenure track positions.

JEL Classification: J31, J44