Abstract
Universities and colleges across the country routinely face faculty turnover. Due to shrinking enrollments over the last decade, the market for finance faculty hires has become extremely competitive. This paper explores the total economic costs associated with filling a vacant finance faculty line. Past studies of the costs associated with hiring in academic labor markets have often excluded implicit costs and rarely focused on business faculty exclusively. In particular, the mark-to-market component associated with filling positions previously held by long-time faculty has been ignored. A generalized model is presented for explicitly estimating the total economic costs associated with finance faculty turnover.
