Influence of the Revenues of the Co-Financed Universities of Ecuador on the Expenditure For Salaries of the Academic and Administrative Personnel

Abstract

Objective: This study investigates the influence of income from co-financed universities on the salary expenses of teaching and administrative staff, aiming to understand how changes in employee salaries impact university revenues. Theoretical Framework: The research is grounded in labor economics and higher education finance theories, providing a robust context for analyzing the financial dynamics within universities. Method: Two econometric models were employed: a multiple linear regression model using ordinary least squares to measure individual effects and a panel data model with random effects to assess grouped effects. Data collection involved analyzing financial records from co-financed universities. Results and Discussion: The results indicate that increased salaries at Universidad Politécnica Salesiana and Universidad Católica Santiago de Guayaquil lead to higher income. A 1% increase in teachers' salaries results in a 0.49% income increase, while a 1% rise in administrative salaries leads to a 0.08% income decrease. These findings highlight significant implications and limitations. Research Implications: The study provides insights for budgeting strategies, salary policies, and financial planning in higher education. It emphasizes the practical and theoretical impacts of salary adjustments on university revenues. Originality/Value: This research contributes to the literature by exploring the novel relationship between employee salary increases and university revenues, offering valuable insights for financial decision-making in higher education institutions.