| By: |
Cater, Bruce;
Lew, Byron;
Pivato, Marcus |
| Abstract: |
Academic research is a public good whose production is supported by the
tuition-paying students that a faculty's research accomplishments attract. A
professor's spot contribution to the university's revenues thus depends not on
her spot research production, but rather on her cumulative research record. We
show that a profit-maximizing university will apply a `high' minimum retention
standard to the production of a junior professor who has no record of past
research, but a `zero' retention standard to the spot production of a more
senior professor whose background includes accomplishments sufficient to have
cleared the `high' probationary hurdle. |
| Keywords: |
academic tenure; labour contract; up-or-out |
| JEL: |
J41 J31 |
| Date: |
2009–01–17 |
| URL: |
https://d.repec.org/n?u=RePEc:pra:mprapa:14823 |