Abstract
Using salary data for business school faculty members at a university that uses rolling, three-year employment contracts and at a university that uses traditional, tenure-track employment contracts, this study examines whether salary compression is associated with years at an institution and/or years in the profession. The results show that salary compression is more associated with the number of years at the institution at the tenure granting institution, and more associated with years in the profession at the non-tenure granting institution. These results could have a profound impact on the type of contracting system a university uses.
