Economic Motivation for Post-Tenure Review in Academic Institutions

David A. Dilts
Hedayeh Samavati
Mashaalah Rahnama-Moghadam

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DOI: 10.2190/CN.31.4.d

Abstract

This article examines the post-tenure review process and the economic motivations for post-tenure review. Economic theory suggests that there is a negative relation between compensation levels and tenure contracts. The available evidence shows that there is a negative salary differential between jobs with tenure and jobs without tenure consistent with the predictions of economic theory. This also suggests that, in litigation, the courts will not place a high value on academic tenure. Post-tenure review seems to have two motivations: One is purely economic, and the other is formative, that is, faculty development. The evidence suggests the latter has been effective in improving faculty performance.

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