The Salaries of Ph.D's in Academe and Elsewhere

Abstract

Median salaries of Ph.D’s are substantially higher for those in nonacademic employment that for those employed by colleges and universities, even after salaries paid on an academic year basis are adjusted upward to a full-year basis. The differences can be seen both in cross—section estimates for 1987 and in fixed effect estimates based on data for Ph.D's who changed“ sectors between 1985 and 1987. The most likely explanation of these differences is that they are compensating differentials reflecting the advantages of academic employment, including greater autonomy and (for those with tenure) greater job security.