The Renumeration of British Academics

39 Pages Posted: 20 Nov 2000

See all articles by Rob Euwals

Rob Euwals

CPB Netherlands Bureau of Economic Policy Research; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Melanie E. Ward-Warmedinger

European Central Bank (ECB); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: July 2000

Abstract

This paper examines both pay relativities and mechanisms for pay determination within the UK academic labour market drawing upon a particularly detailed data set of 635 academics from five traditional Scottish Universities. In the existing literature, the fact that in many occupations, employees are paid according to explicitly determined wage scales is mostly ignored. We employ salary, grade and spinal point information to incorporate the fixed framework of academic salaries into analysis. Our results outline the importance of individual productivity, measured through publication, grant receipt and teaching skill, in attracting financial reward. We find a large penalty associated with time out of the profession and evidence for the deregulation of established pay and promotion structures. In order to identify those academics most likely to leave the profession, analysis also considers the determinants of individuals' reservation and deserved salary. Controlling for individual characteristics we find that lecturers hold the lowest reservation salaries in relation to their current salary level. The academic profession is therefore most at risk from losing its staff at this grade. We find, however, no (self-)selection on the basis of the productivity of individuals.

JEL Classification: A22, C35, J31, J44

Suggested Citation

Euwals, Rob and Ward-Warmedinger, Melanie E., The Renumeration of British Academics (July 2000). IZA Discussion Paper No. 178. Available at SSRN: https://ssrn.com/abstract=250122

Rob Euwals (Contact Author)

CPB Netherlands Bureau of Economic Policy Research ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
+31 70 33 83 438 (Phone)
+31 70 33 83 350 (Fax)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 3894 302 (Phone)
+49 228 3894 210 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Melanie E. Ward-Warmedinger

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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