Upjohn Author ORCID Identifier


Publication Date



Upjohn Institute Working Paper No. 95-37

**Published Version**

In Quarterly Review of Economics and Finance 38(4): 771-798




We estimate the returns to seniority (the wage-tenure profile) for university faculty, and the degree to which these returns respond to entry-level salaries (or opportunity wages) a relationship unexplored in work to date. Using data on faculty at a Big Ten university (ours), we estimate elasticities of senior-faculty salaries with respect to entry-level salaries, and find that these elasticities decline with seniority. The evidence both provides an explanation of faculty salary compression and suggests the importance of controlling for entry-level salaries in obtaining estimates of the returns to seniority.

Issue Date

July 1995

Subject Areas

EDUCATION; Postsecondary education; LABOR MARKET ISSUES; Wages, health insurance and other benefits


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Brown, Byron W. and Stephen A. Woodbury. 1995. "Seniority, External Labor Markets, and Faculty Pay." Upjohn Institute Working Paper No. 95-37. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp95-37