Working Paper: CEPR ID: DP3217
Authors: Gil S. Epstein; Melanie E. Ward
Abstract: This Paper examines the disincentive effects of perceived underpayment on individuals? exerted effort and promotion. To this end we develop a theoretical framework and obtain empirical evidence by analysing British academia data. We find that, tenured academics will tend to invest less effort in publishing as the difference between their perceived deserved income and actual income increases. On the other hand, for non-tenured academics this relationship is ambiguous. Our model predicts that if, however, tenured staff also derive utility directly from publication, over and above that associated with income and promotion, the difference between perceived and actual income has a smaller negative effect on the actual effort invested in research.
Keywords: perceived income; productivity; promotion; underpayment
JEL Codes: J30; J40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| perceived underpayment (J33) | effort invested by tenured academics (D29) |
| effort invested by tenured academics (D29) | publishing outcomes (O36) |
| perceived underpayment (J33) | probability of promotion (J62) |
| effort invested in research activities (O32) | actual income received (E25) |