Working Paper: CEPR ID: DP8966
Authors: Pascal Courty; John Sim
Abstract: The compensation of a professor who is awarded an internal Canada Research Chair (CRC) increases by 6.3 percent on average in our sample. This gain is large initially but quickly erodes over CRC tenure. The gain is slightly larger for professors who change university to obtain a CRC Chair. Assuming that the CRC program has achieved its goal of attracting and retaining top talents, we infer that the compensation cost of doing so is modest. In addition, only a small fraction of the CRC grants have been passed through to professors as compensation increases. This is despite the fact that universities report spending more than half of the CRC grants on chairholder compensation.
Keywords: brain drain; canada research chair; compensation; crowding out
JEL Codes: I23; J3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Canada Research Chair (CRC) nomination (O51) | compensation of professors awarded an internal Canada Research Chair (CRC) (M52) |
| Canada Research Chair (CRC) nomination (O51) | compensation of professors awarded an external Canada Research Chair (CRC) (M52) |
| Canada Research Chair (CRC) nomination (O51) | passthrough rate of CRC grants to compensation increases (H29) |
| passthrough rate of CRC grants to compensation increases (H29) | actual increases in compensation (J33) |
| Canada Research Chair (CRC) program (O51) | effectiveness in retaining top talent (M51) |