why education? teachers labor market: analysis of salary structure
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Why Education? Teachers labor market: analysis of salary structure. Seminar 2 Ilya Prakhov Research fellow, Centre for Institutional Studies. Higher School of Economics , Moscow , 201 2 www.hse.ru. To get started… The role of education. Discuss the following issues in small groups: - PowerPoint PPT PresentationTRANSCRIPT
Why Education?Teachers labor market: analysis of salary
structure
Seminar 2
Ilya PrakhovResearch fellow, Centre for Institutional Studies
Higher School of Economics , Moscow, 2012www.hse.ru
Higher School of Economics , Moscow, 2012
To get started… The role of education
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Discuss the following issues in small groups:
People are poor because they did not work hard enough in school and dropped out.
Countries should invest in education mainly because education affects economic growth rates.
Higher School of Economics , Moscow, 2012
Why do we need education?
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Education is a merit good, which brings private benefits (for students) as well as social benefits (for society as a group of individuals).
This justifies the existence of social costs concerned with education in addition to private costs.
Higher School of Economics , Moscow, 2012
Going to university or not?
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Consumption (short-run reason): utility from education.
Investment (long-run reason): investment in human capital. This investment is made in order to get higher return from education: increase in salary compared to less educated people. It is true under assumption that education raises productivity, which, in turn, should be compensated by higher wages.
Higher School of Economics , Moscow, 2012
Private benefits from education
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Monetary benefits Non-monetary benefits
Greater productivity Higher net earnings Employment Better job opportunities Higher savings Personal and professional
mobility
Educational consumption Improved working conditions Increased personal status Higher job satisfaction Healthier life style Improved quality of life (also for
siblings) More informed decision making More hobbies and value of leisure Personal development
Source: Jongbloed, 2004, p.254.
Higher School of Economics , Moscow, 2012
Social benefits from education
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Monetary benefits Non-monetary benefits
Economic growth Higher tax revenue National and regional
development More flexible labor
force Increased consumption Reduced reliance on
government financial support
Social cohesion, appreciation of social diversity and cultural heritage
Social mobility Reduced crime rates Improved health More donations and charity work Increased capacity to adapt to new
technologies Democratic participation Improved basic and secondary
education
Source: Jongbloed, 2004, p.254.
Higher School of Economics , Moscow, 2012
Costs of education
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Private costs Social costs Tuition fees Study materials Foregone earnings
Operating costs of higher education institutions
Student support Foregone national production
related to students
Source: Jongbloed, 2004, p.254.
Higher School of Economics , Moscow, 2012
Incentives in academia
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Non-monetary mechanisms:Respect by colleaguesReputationUtility from academic work (vocation)
Monetary mechanisms:SalaryGrantsExternal funding
Higher School of Economics , Moscow, 2012
Types of activity in academia
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At each moment of time:ResearchTeachingAdministration
Long-run period:ExperienceSeniority
Theoretical questions: What types of activities should be compensated and how?Do experience and seniority matter?
Higher School of Economics , Moscow, 2012
Salary structure: research, teaching, administration
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Approaches to salary formation: According to productivity According to expected productivity According to results
Potential concerns and difficulties: Asymmetric information between professor and/or
university management, other universities
Higher School of Economics , Moscow, 2012
Studying empirical evidence: research questions
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Static aspect: Which indicators (determinants) are ‘good enough’
and can be used in evaluation of productivity in academia?
Is it true that each factor positively affects salary?
Dynamic aspect:What is the influence of experience and seniority
on salary in academia?
Higher School of Economics , Moscow, 2012
Indicators (measures) of academic activity
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Discuss and offer:Indicators of research activityIndicators of teaching activityIndicators of academic activity
Higher School of Economics , Moscow, 2012
Indicators of research activity
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Number of books published/edited (Katz, 1973; Siegfried, White, 1973; Tuckman, Hageman, 1976; Gomez-Mejia, Balkin, 1992);
Number of published papers (Katz, 1973; Siegfried, White, 1973; Tuckman, Hageman, 1976; Gomez-Mejia, Balkin, 1992; Fairweather, 1993);
Number of papers published in high quality journals (Katz, 1973; Siegfried, White, 1973; Gomez-Mejia, Balkin, 1992);
Number of monographs (Siegfried, White, 1973);Number of dissertations supervised by professor (Katz, 1973);Citation count (Gomez-Mejia, Balkin, 1992);Time devoted to research (Fairweather, 1993);Number of externally funded projects (Fairweather, 1993).
Higher School of Economics , Moscow, 2012
Indicators of teaching activity
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Rating of professor (Katz, 1973);Average score based on students’ recommendations
(Siegfired, White, 1973);Students’ and administrators’ opinion about quality of
teaching (Gomez-Mejia, Balkin, 1992);Teaching awards (Tuckman, Hageman, 1976);Number of dissertations supervised by professor (Katz,
1973);Time devoted to teaching (Fairweather, 1993);Teaching bachelor students only (Fairweather, 1993);Teaching post-graduate students (Fairweather, 1993).
Higher School of Economics , Moscow, 2012
Indicators of administrative duties
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Professor held administrative position in the past (Katz, 1973; Tuckman, Hageman, 1976);
Professor currently holds administrative position (Katz, 1973; Tuckman, Hageman, 1976);
Time devoted to administrative duties (Katz, 1973).
Higher School of Economics , Moscow, 2012
Results
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Katz, 1973. The main predictor of salary - publications. Teaching: students’ evaluation is not significant, but supervising has positive effects. Administrative work has significant, but modest effect on salary.
Siegfired, White, 1973. Greatest effect – publications in national or specialized journals. Administrative duties have strong positive effect. Teaching is significant only at 10% interval.
Tuckman, Hagemann, 1976. The main factor – number of articles published. Books matter. Teaching is insignificant. Administrative duties have positive effects.
Gomez-Mejia, Balkin, 1992. The main determinant of salary – publications in refereed journals of a high quality. Teaching matters only for the most successful researchers.
Higher School of Economics , Moscow, 2012
Academic salary in dynamics
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Why higher experience should be compensated by higher salary?
Results, which were obtained on academic labor market do not correspond with those, which were obtained on non-academic labor market.
Higher School of Economics , Moscow, 2012
The model
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Earnings equation:
ln w = f(Х), where
ln w – natural logarithm of salary,Х – vector of independent determinants of salary with variables of experience and seniority.
ln w = a0 + a1 · Experience + a2 · Seniority + aX
Experience – number of years working,Seniority – number of years within this university
Higher School of Economics , Moscow, 2012
The model: effects of experience and seniority
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Higher School of Economics , Moscow, 2012
Possible explanations
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Decline in productivityAsymmetric information between professor and
administration Moving costsMonopsony on academic marketTenure contractsProfessional unions
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