A BEJEAP Contributions article.

Abstract

In most countries, academic pay is independent of discipline, thus ignoring differences in labor market opportunities. Using some unique data from a comprehensive research assessment exercise undertaken in one such country -- New Zealand -- this paper examines the impact of discipline-independent pay on research quality. I find that the greater the difference between the value of a discipline's outside opportunities and its New Zealand academic salary, the weaker its research performance in New Zealand universities. The latter apparently get what they pay for: disciplines in which opportunity cost is highest relative to the fixed compensation are least able to recruit high-quality researchers. Paying peanuts attracts mainly monkeys.

Submitted: March 2, 2008 · Accepted: June 15, 2008 · Published: July 18, 2008

Recommended Citation

Boyle, Glenn (2008) "Pay Peanuts and Get Monkeys? Evidence from Academia," The B.E. Journal of Economic Analysis & Policy: Vol. 8 : Iss. 1 (Contributions), Article 21.
DOI: 10.2202/1935-1682.1976
Available at: http://www.bepress.com/bejeap/vol8/iss1/art21