Do Gender and Race Play a Role in the Compensation of University Presidents? Evidence from Institution-level Panel Data

Abstract

This study updates and extends prior economics research on the compensation of college and university presidents by examining a 13-year panel containing data on the total compensation packages of private college and university presidents in the U.S. Our econometric approach is the first to include president-level information on both gender and race in order to draw inferences about both the male female and white-black pay gaps (favouring males and whites, respectively) in higher education administration. Results from both OLS and fixed-effects estimations suggest that white female presidents are paid significantly less than their white male counterparts, although this difference, which ranges from six to 9.8 per cent, is sensitive to the racial makeup of the student body of the institution to which a president is affiliated. Secondarily, we also find that non-white male presidents earn more than their white male counterparts. This gap is also sensitive, although to a lesser degree, to the racial makeup of the student body of the institution to which a president is affiliated.

JEL Codes: J30, J31, J33, J71