Faculty of Economics and Business Administration Publications Database

Academic Faculty Governance and Recruitment Decisions

Prüfer, Jens
Volume: 155
Number: 3-4
Pages: 507 - 529
Month: October
ISSN-Print: 0048-5829
Link External Source: Online Version
Year: 2013
Keywords: Academic faculties; University governance; Status organizations; Labor market competition
Abstract: We analyze the implications of the governance structure in academic faculties for their recruitment decisions when competing for new researchers. The value to individual members through social interaction within the faculty depends on the average status of their fellow members. In recruitment decisions, incumbent members trade off the effect of entry on average faculty status against alternative uses of the recruitment budget if no entry takes place. We show that the best candidates join the best faculties but that they receive lower wages than some lesser ranking candidates. We also study the allocation of surplus created by the entry of a new faculty member and show that faculties with symmetric status distributions maximize their joint surplus under majority voting.