News, Views and Careers for All of Higher Education
Sept. 2
Although it is far from the norm, a few colleges pay their assistant professors more on average than they do their tenured professors. Although such pay scales might harm the egos of tenured professors, they can benefit colleges.
Organizations often pay high salaries to (1) attract new employees, (2) keep existing employees, (3) compensate workers for unpleasant working conditions and (4) compensate workers for taking on risks. These four criteria support colleges giving relatively higher salaries to assistant professors.
Consider a college that has some extra money to spend on faculty salaries. In many fields, this college competes intensely with other schools for talented assistant professors. So the college could increase the quality of its faculty by using its extra money to boost assistant professors’ salaries.
Compared to assistant professors, tenured professors rarely switch jobs. Our hypothetical college probably won’t lose a significant number of its non-superstar tenured faculty if it doesn’t allocate its extra money to raising their salaries. (And the college can always cut separate deals with it superstars.) So to maximize the quality of its faculty, the college should create a pay structure in which tenure-track assistant professors earn more than tenured professors. As the following example shows, a college can do this without ever decreasing a professor’s salary even if the professor is promoted.
|
Year |
Tenured Professor’s Salary |
Assistant Professor’s Salary |
|
2008 |
$77,000 |
$80,000 |
|
2009 |
$80,000 |
$83,000 |
|
2010 |
$83,000 |
$86,000 |
[If an assistant professor were promoted at the start of 2010 he would make $83,000 in both 2009 and 2010.]
Assistant professors in many ways have harder jobs than tenured professors do. They have more pressure to publish. They usually spend more time on class preparation because they have taught their classes relatively few times. And, keeping in mind their looming tenure bids, they often feel compelled to be more deferential to their senior colleagues than they would prefer. Those who care about economic fairness consequently should support the idea of assistant professors making more than tenured professors. And those who care about markets should understand that the less pleasant the job, the higher salary you must pay to attract top talent.
Job security is a large part of tenured professors’ compensation. So even if a tenured professor has a somewhat lower monetary salary than an assistant professor does, he probably, over all, receives more total compensation than his non-tenured colleagues. After all, I suspect few tenured professors who are not superstars or close to retirement would agree to exchange, say, $3,000 in extra salary in return for abandoning tenure.
Markets compensate intelligent risk takers. For example, investing in the stock market yields a higher average return than investing in safe government bonds does. Up or out tenure decisions foist enormous risk on tenure-track assistant professors. Ph.D.’s in practical fields in which many non-academic jobs are available should be willing to take on tenure risk only if they are suitably compensated for it. In contrast, however, being a tenured professor is one of the safest jobs on the planet, and consequently you would expect markets to pay tenured professors a negative risk premium that reduces their salary.
It’s relatively less risky for a college to increase its assistant professors’ salaries. For reasons economists don’t fully understand, employers almost never decrease their workers’ nominal salaries. So if a college gives a raise to a tenured professor, it is stuck paying this raise until the professor retires. In contrast, if an assistant professor becomes too expensive the college can simply not reappoint him.
I’m actually surprised that the academic market doesn’t induce more colleges to pay greater salaries to assistant professors than to non-superstar tenured professors. Tenured professors, however, have on average vastly greater bureaucratic power than their untenured co-workers and perhaps such power discrepancies explain why at most colleges tenured professors earn more than assistant professors.
Some might claim that not rewarding tenured professors for their long experience would harm their morale. But I wonder how many talented assistant professors have had their morale damaged (or indeed have even voluntarily left academe) because they are paid less than some of their less talented and less hardworking senior colleagues.
Want it on paper? Print this page.
Know someone who’d be interested? Forward this story.
Want to stay informed? Sign up for free daily news e-mail.
Advertisement
I can’t even begin to parse the specious reasoning behind this article, so I’ll limit myself to one point: if the logic of this thesis is followed rigorously, when Prof. Miller’s valued assistant professors earn tenure and become senior professors themselves, will they be willing to have their salaries reduced, so that their junior colleagues can be paid more then them? If not, then salaries of new assistant professors would have to be higher still so they can exceed those of the previous batch of assistant professors, who would have received a series of annual raises. This article advocates an unsustainable Alice-in-Wonderland world!
Christopher Berg, at 6:45 am EDT on September 2, 2008
And when these assistant professors get tenured, the new assistant professors must be paid even more than the newly tenured, and so on and so forth...until after a few rounds of hiring, new assistant professors get paid more than the university president!
This program doesn’t make much sense at all.
Bruce McCullough, at 9:10 am EDT on September 2, 2008
And then, those with the lowest status, the adjuncts, would make the most of all! Dah ...
sk, at 9:30 am EDT on September 2, 2008
This really takes the cake as the dumbest comment by an academic economist on this site.
In addition to the flaws mentioned in the previous comments, Miller’s fundamental premise is wrong in that it omits another important reason for pay: to reward cumulative accomplishments and thereby encourage more. Miller’s proposal would do the opposite: by failing to reward accomplishments, it would discourage post-tenure research and teaching. Why continue to work at or above the pre-tenure standard if there is no reward?
Second, his proposal ignores the dynamic effects of such a change. Even if tenured profs move less often now, a matter about which he provides no evidence, they surely would move more once a college adopted this peculiar pay structure. An economically sensible professor would eagerly join the faculty for the extra pre-tenure pay, then jump ship after tenure to work at an institution that rewards productive faculty in their middle and later years.
Third, even if the faculty remained in place, the result would be a two-humped distribution of high pay for untenured faculty and for the superstars and low pay for everyone in between. I couldn’t imagine a system more calculated to destroy faculty morale and institutional loyalty. Miller’s ideal college would be a very unhappy place. The resulting ill will would not endear the juniors to their seniors, which in turn would have nasty effects on tenure decisions.
I could go on, but this poppycock idea isn’t worth it. Half-baked suggestions like this give academics the bad reputation for practical ignorance that they sometimes deserve.
Dennis Nolan, Professor Emeritus at University of South Carolina, at 10:00 am EDT on September 2, 2008
Miller writes, “I’m actually surprised that the academic market doesn’t induce more colleges to pay greater salaries to assistant professors than to non-superstar tenured professors.”
In other words, he’s so wedded to his theory he’s shocked that reality doesn’t support it.
Eveningsun, at 10:05 am EDT on September 2, 2008
Perhaps things are different at Professor Miller’s college, but at the institutions I’ve been affiliated with the senior faculty do more research, and have greater research impact; they support and train more graduate students; they get better teaching evaluations in their undergraduate classes; they serve as department chairs and in other leadership roles; they do essentially all the curricular development; and, incidentally, they staff hiring committees to hire junior faculty.
As dean, I’ve rarely had a retention battle for a junior faculty member that was nearly as hard fought as is common when I have a senior faculty member testing the waters elsewhere. The stakes for us are simply higher in the latter case.
Don’t get me wrong — I care deeply about my junior faculty, and know that they are working very hard under enormously stressful conditions. (I was an assistant professor once too.) I do what I can to help them establish research programs, by providing set up funds and renovation, and their chairs provide teaching relief and the services of the center for teaching and learning. I hope every one of my junior faculty develops into an outstanding, tenured senior faculty member. But they aren’t there yet.
Anon R1 dean, at 10:25 am EDT on September 2, 2008
First of all, please don’t think I am apposed to oversimplification (modeling). Our learning would often be seriously stymied without the ability to oversimplify.
But what I love about economic models – or is it the economists who develop them? – is that the oversimplifications often capture a “reality” that is questionable to begin with and then the economic assumptions used to take us from basic postulates to real world consequences are so inconsistent with reality, it’s no wonder the conclusions are nothing less than bizarre. In short, a model whose objective functions are trite will almost never tell you anything of interest.
On the other hand, it’s economics. Therefore, as the queen of the social sciences, it must be right. Whew!
P.S. My suggested reading for this week is “Predictably Irrational” ...
http://www.borders.com/online/store/TitleDetail?sku=006135323X
Frizbane Manley, at 10:30 am EDT on September 2, 2008
There is an important point to be made here. Many departments have tenured faculty who are no long very productive in terms of research. Therefore they are, in reality, no threat to leave for a new position. Because schools usually have high standards to hire someone with tenure, these professors actually have no options outside their current jobs. Suppose administrators told them they would no longer receive any raises, they would still keep their jobs.
Thus I think the point isn’t that all assistant professors should receive higher salaries, but that higher salaries should reflect the professor’s value. Senior faculty with high salaries and no production should receive no raises.
rightwingprofessor, at 11:05 am EDT on September 2, 2008
Previous posters have done an admirable job of dissecting this bit of nonsense with respect to unevidenced claims, poor reasoning, and perspectival blinders. What I enjoy most is the suggestion that private deal-cutting between administrators and purported ’superstars’ should be an accepted method of governance. So much for transparency — and ‘economic fairness.’
cts, at 11:10 am EDT on September 2, 2008
I’m fascinated by the critiques here. I’m not an economist, I changed my major in college because it would have required more economics courses than I could stomach, and as an experimental psychologist I can’t fathom the relatively high weight economists put on theory compared to data. However, this is a case where there are data to support this thesis. Further, some of the critics here don’t appear to be reading the essay as closely as they ought to... Data: Salary compression! My first faculty position was at a Research I institution, and I was paid more than some tenured associate professors because the department hired at “market rates” for new faculty, but the state had been providing salary increases for existing faculty at a lower rate of increase. Did anyone leave because of the salary compression? No. Did they complain? Oh, yes. To me, as if it were my fault that I was paid what I was. I even got an implicit threat because my incentive package (startup $ for research, course releases, salary) was too high for his liking. Did he leave? No. Parsing the argument: In the chart in the essay, the author shows consistent raises ($3K per year) for the assistant and the tenured faculty. But there is a note that after tenure, the raises stop or slow down so that the newly tenured soon approaches the salary of the other tenured (whose salaries continue to rise over time). Meanwhile, everything continues to rise, so that incoming new faculty are paid more but not in an ever-increasing spiral that makes the proposal go out of control. This is not a bad proposal, except that it makes everyone go ballistic... because it makes explicit what happens implicitly all the time. It’s just salary compression/inversion made systematic, and for reasons that make sense to me. Aah, but then, I’m drifting into administration... welcome to the Dark Side... lol
Ray, at 11:10 am EDT on September 2, 2008
You obviously hit a nerve, Mr. Miller. Well done. When the over-privileged moneyed classes howl, you know you’re on the right track.
Decouple tenure from compensation. That’s the place to start.
reader, at 11:40 am EDT on September 2, 2008
How about paying people what they are worth, based on time, attendance and competency. I have been an Adjunct for 10 years and really enjoy teaching. I don’t do it full time because I have developed a lifestyle of which I have grown fond. This “new” lifestyle also includes eating regularly, something I may not be able to do as a “tenured” professor. However, if I could have a closet to hang my coat between classes and maybe an umbrella space, I may teach an additional ten years because I will be in bliss! Prof. Henderson
Paul Henderson, Director at NYC Probation, at 5:00 pm EDT on September 2, 2008
The idea is that experience in a profession means, on average, that a better job will be done. Especially in a profession where it’s hard to measure how good a job is being done, it makes sense to pay experienced people more.
What’s amazing is that this concept is not applied, at least in my experience, to adjunct instructors. My thirty years of teaching has no effect on my salary; I’m paid the same as someone who has never taught before.
Ralph deLaubenfels, at 9:10 am EDT on September 3, 2008
Paul and Ralph make excellent points. If you believe in paying based on experience then long time adjuncts should make very high relative salaries, often higher than many full professors do.
Of course, since adjuncts have no political power at colleges, schools usually pay them as little as the market will allow. In contrast, because tenured professors run most schools they are able to push the wages of many tenured professors up well beyond what it would take to keep them at their jobs.
James D. Miller, Associate Professor at Smith College, at 10:03 am EDT on September 3, 2008
Adjuncts are not doing the same job in terms of content as those on the tenure track, at least in most 4 year institutions. They may be capable of doing it, but the job description is different, which is part of why the pay is different. Adjuncts do not do advising, do not supervise student research or honors theses, do not participate in service, do not typically attend department meetings, are not expected to publish and do research, are not expected to be active in professional organizations or attend conferences, and are not expected to attend campus events (drama, athletics) in order to show spirit or support for student and university activities. At some private colleges, tenure track faculty are also expected to engage in fund-raising by wooing donors or to seek external grant funding for their research. Adjuncts are off the hook for most of that kind of stuff. Any evaluation of the adequacy of pay needs to take into account the content of the jobs being compared.
I think it is idiotic to assume that someone in academia does not get better with more experience. Asst. Professors put more time into their teaching because they do not yet know the mechanics of instruction, course design, have less broad knowledge in their field, and generally know less about what they are doing. Putting in more hours doesn’t necessarily mean someone is doing a better job at something. It may mean they are working less effectively at it.
Perry, at 11:45 am EDT on September 3, 2008
Many tenured faculty do not do research. The difference in “job content'’ between them and adjuncts is primarily administration (the noble-sounding “service'’ usually means administration). Yet they routinely make three to five times the salary of an adjunct teaching the same number of classes. If the difference in benefits is included, the factor would be more like four to six.The people making the most money (deans, provosts, etc.) are full-time administrators doing (in my experience) no teaching.
I agree that administration is worth something, but is it really worth this much more, in a university, than teaching? Returning to the subject of the original article, the fact that experience counts for absolutely nothing in determining the salary of adjuncts (at least in my experience) is another sign that teaching is not taken seriously, is not considered a real profession.
Ralph deLaubenfels, at 5:20 pm EDT on September 3, 2008
The only reason colleges can attract serfs (adjunct staff) is because of the hopes of one day becoming tenured. Take that dream away and they would have to pay everyone decent wages.
The real solution- get rid of tenure, pay for productivity. But that would never occur to an academic, who has run into academia to avoid accountability.
mike, at 5:10 am EDT on September 5, 2008
Professor Miller, I look forward to reading _Principles of Microeconomics_. Your article seems to me a faint—very faint—echo of a principle set forth in Robin Hahnel and Michael Albert, _The Political Economy of Participatory Economics_, Princeton: Princeton UP, 1991, and again in Albert’s _Parecon_, 2003.
I enter this discussion late, hoping you see this. If ever you have a look at either book I’d appreciate your comments (some colleagues and I are doing research on what such a political economy, over time, would do to culture).
Thanks, 875432@verizon.net
Karin Foster, at 8:35 am EDT on September 5, 2008
Karin Foster,
I haven’t read The Political Economy of Participatory Economics, but I would be happy to discuss the principle you refer to if you describe it to me. Of course, I understand with classes just starting you might not have time to do this.
Jim MillerEconomicProf@Yahoo.com
James D. Miller, at 12:10 pm EDT on September 5, 2008
Karin Foster,
I haven’t read The Political Economy of Participatory Economics, but I would be happy to discuss the principle you refer to if you describe it to me. Of course, I understand with classes just starting you might not have time to do this.
Jim MillerEconomicProf@Yahoo.com
James D. Miller, at 12:20 pm EDT on September 5, 2008
1. What you suggest already happens in some places, because salaries flatten out after tenure and new hires must be courted. 2. Tenured professors, at least in the humanities (science is a different ball game) are already significantly underpaid when compared with their age-cohort peers who are lawyers, doctors, and stock-brokers. It’s fine; because after all we have jobs we love and that are secure. But to greatly underpay the senior members of one profession in comparison to its junior members seems wrong: how would senior lawyers or doctors respond to that suggestion, I wonder? Like other senior professionals, tenured professors have worked their way up a ladder, arduously, and have gained experience which in itself is part of what makes the job easier than at the start. Everyone can play the game — threatening to leave for another job to get a salary raise — but why should an advantage be built in for all assistant professors, and not in all other professions?3. A Connecticut Yankee in King Arthur’s Court, last paragraph of chapter 28: “There are wise people who talk ever so knowingly and complacently about ‘the working classes,’and satisfy themselves that a day’s hard intellectual work is very much harder than a day’s hard manual toil, and is righteously entitled to a much bigger pay... Intellectual ‘work’ is misnamed; it is a pleasure, a dissipation, and is its own highest reward...” Etc, great stuff, look it up for yourself.
Coral Hughes, newly Assoc Prof at University of California, at 12:30 pm EDT on September 5, 2008
Becuase they don’t do anything most people find valueable and worth paying for. They spend most of their time trying to create theories and convince others of their theories and the point of those theories are “rich people are evil and they owe me money". Science professors help our quality of life, some perhaps indirectly. Humanities profs are destroying the fabric of a civilization that took millenia to create but only a few generations to undo.
“Hey Ho Western Civ has got to go.” No, humanites professors have got to go...
mike, at 5:50 pm EDT on September 5, 2008
I agree with both you and Cornel West on that point, Mike. Also, Henry David Thoreau said, “The rich man is always sold to the institutions that make him rich.” Notice the passive voice “is sold.”
Rich people don’t owe poor or middle class people money. Our institutions just ought not to allow for gross inequaliies of wealth in the first place. It is institutions that are “evil,” or less than the best. Not people.
True, people (all of us) can be corrupted by such institutions. The point is to understand our INSTITUTIONS and change them. And not—as you rightly insisT—to demonize anyone.
Malvern Hill, at 4:00 pm EDT on September 6, 2008
Sorry Malvern,I doubt we agree. I’m a captitalist that believes in very moderate government regulation, e.g. anti trust laws. I’m not a socialist or communist. I like our institutions just the way they are. I suspect people who try to make everyone equal. That is the road to totalitarianism. “Making it all fair” always means taking money from rich and productive people and giving it to — you, all in the name of “fairness".
mike, at 3:10 pm EDT on September 7, 2008
Mike,I don’t know about “making it all fair.” Some (maybe you?) think what we have is already fair enough. Trouble is, many disagree. And what, then, of democracy? Who has the power to bulldoze over others? A wealthy private sector, not altogether unlike Communists in power. As but one example: Why 10,000 farmer suicides in India during the 1990s and beyond? Ask Monsanto. Ask global corporations about what they’re doing that’s not reported in the corporate media. The not-said: it’s worse than Pravda.
So we’re left in a quandary. If things are not “fair” and we want to keep them not fair, it leaves us in a crisis of legitimacy. And I don’t really see the difference between a government that “takes money away” from some people in order to “make things fair” and a private sector that extracts surplus value from people’s labor, foists on them all manner of consumer fraud (i.e. “takes money away” in order to make things even more unfair.)
I’ve noticed that in all of recorded history the rich of any given nation or City State has always argued, “Let us adopt policies that will make the rich even richer, and it will be good for the whole society.” Of coure, that was always bogus. Was then, is now.
How to resolve the impasse? How to create a better equilibrium that allows for freedom at the same time equity and solidarity? The reason I say “institutions” is because most of our institutions are mindless and on automatic pilot. We don’t think through them; the institutions think through us. It’s conceivable that democracy might—mindfully—invent institutions that actually drive the values of solidarity, equity, self-managment, diversity. If the institutions themselves DRIVE those values then they cannot lapse into totalitarianism because everone has the power to make decisions in proportion to the degree she is affected. But we have to have the political and imaginative will to hash out such a system. Therein lies the rub. We’d have to get their minds off automatic pilot, that think in crude binaries: i.e. “If not capitalism then totalitarian Communism.” It’s a legitimate concern, yes. But not a reason for giving up. Where there’s a non-capitalist and non-totalitarian will, there’s a way, i.e. letting Indian farmers resume their traditional, cooperative, self-management style of agriculture and engaging not in “free” but in, yes, FAIR trade.
Malvern Hill, at 7:15 pm EDT on September 9, 2008
I, too, have doubts about the workability of Miller’s proposal, but I find it a stimulating thought-experiment. I think some of the commentators aren’t appreciating that Miller is doing a couple of the things, here, that economists are really good at: namely, asking questions about incentive structures and pointing out that it is at least *not obvious* why things are as they are. Is it really *obvious* that senior, tenured professors should be the most highly-paid? Surely it is at least not *obvious.*A proposal like Miller’s — even if utterly unworkable — is a service if it gets us to think through carefully just *why* it’s unworkable.
Chris MacDonald, Associate Professor (Philosophy) at Saint Mary’s University, Canada, at 11:00 am EDT on September 12, 2008
$77,000? $80,000? Ha! 7 years in, newly tenured, and I’m lucky to pull in $20,000 less than that if I work summer overload, too. Big State School, research intensive. I guess I am a schmuck.
Newly Tenured, at 8:10 pm EDT on September 15, 2008
Advertisement
or search for jobs directly.
Saint Louis University is a Jesuit Catholic University. Through teaching, research, health care and community service, Saint ... see job
Located just north of Houston, Texas, our five campuses serve 1,400 square miles. Our student enrollment is nearly 50,000 in ... see job
A career at Johnson County Community College is more than a job. We believe it’s important to invest in our employees and ... see job
Join the Pack! A community with nearly 8,000 faculty and staff, and 30,000 students. NC State is one of the largest employers ... see job
The University of Minnesota is a premier employer and a talent magnet attracting leading faculty and staff from around the ... see job
The University of Minnesota is a premier employer and a talent magnet attracting leading faculty and staff from around the ... see job
Position Summary: The Theater & Dance Program at the Lewis Center for the Arts is in need of ... see job
Posting Description: The School of Public Affairs (SPA) at the University of Colorado Denver seeks ... see job
Posting Description: The School of Public Affairs (SPA) at the University of Colorado Denver seeks ... see job
East Carolina University, a constituent institution of the University of North Carolina, is a doctoral institution with an ... see job
Say What?
Every now and then, IHE publishes a piece like this that amazes me for its lack of a fact base and its poorly argued theses. We have ridiculous statements such as this: “Consider a college that has some extra money to spend on faculty salaries.” And what college might that be? Or this: “Compared to assistant professors, tenured professors rarely switch jobs.” Oh, yeah? Evidence, please, adjusted for time in rank. Or perhaps this: “[Assistant professors] usually spend more time on class preparation because they have taught their classes relatively few times.” Well, that surely justifies higher pay. As an administrator who hires assistant professors, I can tell you that our senior ones spend a good deal of their day mentoring them on research, teaching, service, advising and a lot more. However, the silliest theme of this piece is that what is preached here is practiced in the risk-taking business world that fires, outsources or downsizes experience, leaving us the marvelous economy that we now enjoy. Here’s a thought: Apply the inane theory here to the workplace. Deloitte, the top accounting firm in the country, has no performance bonus for the most junior staff but is known as a company where new hires can develop. That’s what assistant professors do: they develop. Some work out, others don’t. Moreover, salary compression is the one problem that most of us in administration are trying to address, especially as it pertains to women and minorities. This article just isn’t helpful except to appeal to junior faculty looking for an advocate while trying to attain tenure. When they do, they get a pay increase typically along with the promotion. When they don’t, they often find an institution more in line with their talents. Report on that, and you’ll be informing the IHE audience.
Michael Bugeja, Director at Greenlee School, at 6:10 am EDT on September 2, 2008