Abstract
Whether the salary differential between junior and senior faculty is overly small or is falling (“salary compression”) is currently a popular topic in higher education. However, simple comparisons of average salaries for junior and senior faculty alone cannot address the question of whether salaries are overly compressed, since there is no standard for comparison. This paper presents a simple five-step regression analysis procedure that researchers can use to determine whether salaries are overly compressed. Faculty salary data in academic year 1990-91 from the University of Minnesota show that contrary to popular opinion the average salaries paid to junior faculty are not above what they would be predicted to receive if they were paid as senior faculty.
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