Studies find that controlling for other factors, university professors earnings tend to decline with experience. In other

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Studies find that controlling for other factors, university professors’ earnings tend to decline with experience. In other words, the more seniority a faculty member has with a particular institution, the lower his or her salary after accounting for other factors such as productivity, degree, and field of study. Explain why this phenomenon may reflect monopsony power being exercised by universities because of the greater moving costs faced by more senior faculty members.

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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