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Demonstrates salary compression impacts various academic ranks, suggesting implications for faculty compensation strategies.
Salary compression, defined as a decline in the relative salary premium associated with academic rank and/or experience, has become a problem for accounting administrators who must formulate compensation strategies and faculty development policies. This paper employs ANOVA to demonstrate that the problem of salary compression affects many academic ranks and experience levels. It also provides additional evidence which helps to identify the underlying causes of salary compression and the extent to which its effects are asymmetrical across faculty groups.
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Jacobs et al. (1987) studied this question.
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