Evidence of Faculty Salary Differences Across Business Disciplines and Employment Contracting Systems

Abstract

Using sample data from two accredited business schools in the Florida State University System, one non-tenure granting and one tenure granting, and regression analysis, this paper explores variation in faculty salary levels across business disciplines. The results indicate (1) that accounting and finance professors earn more than management professors, thus receiving a salary premium in the market, (2) that marketing and information systems/operations management faculty earn no significantly different salaries than management professors, and (3) that economics professors earn less than management professors and thus receive a discount in the market. The results also indicate that rank, administrative duties, years in the profession, and research productivity are significant determinants of the salaries of business professors, but that salaries in this sample are unrelated to gender and race. The findings also provide evidence of salary inversion, with assistant professors receiving larger salaries than associate professors. The unique results of this study are that salary discounts and premiums by discipline are similar at both non-tenure granting and tenure granting universities.