ABSTRACT This study investigates the impact of teaching-only contracts on student satisfaction in UK Higher Education, with a focus on esteem uncertainty through the lens of asset specificity. Utilising an institutional-level student dissatisfaction index, we analyse the combined effects of teaching-only contracts, faculty compensation and research intensity. The findings suggest that while teaching-only contracts can enhance student satisfaction by encouraging pedagogical innovation, their positive impacts are at risk of being diminished by issues of esteem uncertainty, especially due to limited opportunities for career advancement and institutional focus on research. Our study provides valuable insights for Higher Education policymakers, underlining the importance of addressing the esteem-related challenges academic staff face. By incorporating these factors into policy decisions, it’s possible to bolster educational quality and improve student experiences, ensuring that the advantages of teaching specialisation are not undermined by wider institutional practices.
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