NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Impact of the Financial Crisis on Faculty Labor Markets

Sarah E. Turner

Chapter in NBER book How the Financial Crisis and Great Recession Affected Higher Education (2015), Jeffrey R. Brown and Caroline M. Hoxby, editors (p. 175 - 207)
Conference held September 27-28, 2012
Published in December 2014 by University of Chicago Press
© 2015 by the National Bureau of Economic Research

The impact of the recent financial crisis--as well as prior cyclical downturns--on faculty hiring and wages is not well understood. An important first step is to document the basic short term relationship between budget cuts, employment levels and wages among different types of colleges and universities. The fiscal crisis brought a collision of contractions in budgets and increased student enrollment demand. As a result, faculty hiring in the junior ranks contracted sharply while student faculty ratios have increased commensurately. The magnitude and duration of these effects differs markedly across institutions. For private research universities that draw substantially on endowment income, the financial crisis produced a short--though significant--shock to revenues and, in turn, hiring. For public universities, the effects of the financial crisis are longer-lasting, with appropriations in many states continuing downward to 2012, and the impact on hiring longer lasting. The Great Recession has further widened differences between public and private universities in faculty staffing and, to some degree, salaries. As student faculty ratios have increased notably at public-sector institutions, it is natural to ask whether this decline in resources per student will adversely affect student attainment and research output in the coming years.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.

This paper was revised on July 15, 2013

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded these:
Long The Financial Crisis and College Enrollment: How Have Students and Their Families Responded?
Bettinger and Williams Federal and State Financial Aid during the Great Recession
Brown and Hoxby Introduction to "How the Great Recession Affected Higher Education"
Brown, Dimmock, and Weisbenner The Supply of and Demand for Charitable Donations to Higher Education
Dinerstein, Hoxby, Meer, and Villanueva Did the Fiscal Stimulus Work for Universities?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us