Academic scholarship, organization prestige, and the earnings of U.S. business school deans

Abstract

This study models the market for business school deans as an outcome of a differential game between a university's central administration and the job candidates in the market for business school deans. In our model, the ability of a business school dean to advance the organization is enhanced by his or her own scholarly reputation, such that a job candidate chooses an optimal level of scholarship that relates to his or her marketability. In this way, the supply of scholarship (by job candidates) can be seen as the supply of job candidates in the market for business school deans, whereas the demand for scholarship can be seen as the demand for business school deans. The main features of our game‐theoretic model are tested using data from both national and regional business schools and colleges in the U.S. Econometric results indicate that each additional scholarly contribution by a business school dean generates a wage premium ranging from $1,000 to $1,200, whereas in the case of national institutions, each additional student enrolled at the doctoral (master's) level raises the wage by $671 ($56). Lastly, the production of between nine and 10 scholarly contributions is found to be necessary in order to face a 50% probability of holding a business school deanship at a national institution, whereas production of about 37 scholarly contributions leads to a 50% probability of holding a deanship with a named business school at a national institution.

Negotiation and bargaining power in the determination of administrative wages in academe

“…Using data from both national and regional business schools and colleges in the United States, Faria et al (2019) examine the determinants of the compensation of business school deans in the United States 1 . In doing so, they find that each additional scholarly contribution by a business school dean generates a wage premium ranging from $1000 to $1200, whereas in the case of national institutions, each additional student enrolled at the doctoral (master's) level raises the wage by $671 ($56).…”

“…In doing so, they find that each additional scholarly contribution by a business school dean generates a wage premium ranging from $1000 to $1200, whereas in the case of national institutions, each additional student enrolled at the doctoral (master's) level raises the wage by $671 ($56). Lastly, the production of between 9 and 10 scholarly contributions is found to be necessary in order to face a 50% probability of holding a business school deanship at a national institution, whereas production of about 37 scholarly contributions leads to a 50% probability of holding a deanship with a named business school at a national institution (Faria et al, 2019).…”

“…There is, of course, a large literature on gender and racial discrimination in the wages of rank-and-file faculty (e.g.,Ashraf, 1996;Barbezat, 1987;Blackaby et al, 2005;Ginther & Hayes, 2003;Gordon et al, 1974;Hirsch & Leppel, 1982;Hoffman, 1976;Koch & Chizmar, 1976;Lindley et al, 1992;Takahashi & Takahashi, 2011;Toutkoushian, 1998). This literature has even turned, in recent years, to explorations of gender and race effects in faculty hiring (e.g.,Faria et al, 2016), promotion (e.g.,Faria et al, 2013;Sabatier, 2010), and the awarding of named professorships (e.g.,Gomez-Mejia et al, 2009;Mixon & Treviño, 2005;Treviño et al, 2017Treviño et al, , 2018.3Sorokina (2003) concedes that some labor market characteristics that may be correlated with gender are not controlled for in the study and, importantly, that wage gap decomposition, which is often used to detect discrimination in pay, is beyond the scope of the study.4 Professors do impact the revenue function of the university, given that, according to 3 and 4, tuition and the university's productivity are functions of faculty, L.5 An implication of 14 is that 11 illuminates issues regarding bargaining power and gender or racial discrimination in the market for deans.6 Some of these implications are supported inFaria et al (2019).7 Physical copies of public universities' annual budgets are often housed inside these institutions' libraries and are available for viewing. Visiting faculty who are on campus as part of the interview process often find the time to peruse these budgets in an effort to gather information on the salary structures of the host institutions.8 See http://uknow.uky.edu/eli-capilouto-named-12th-university-kentuckypresident.…”

Gender discrimination in the business school’s C-suite? Evidence from aggregate decomposition approaches

“…Next, Tenure i is equal to the number of years that a business school dean, i, has served in that administrative position at his or her current institution. Prior academic research (e.g., Ransom, 1993;Boal and Ranson, 1997;Bratsberg et al, 2003Bratsberg et al, , 2010Moore et al, 2007;Ashenfelter et al, 2010;Haeck and Verboven, 2012;Faria et al, 2019) emphasizes the importance of monopsony power held by institutions of higher education. Such power suggests that, in the case under study, a business school dean's tenure will be negatively related to LogSalary i .…”

“…As a result, it is expected that NamedSchool i will be positively related to LogSalary i . Next, research by Faria et al (2019) indicates that successful job market candidates are able to achieve a marketable level of scholarship over the course of their academic careers.…”