Publishing pays: Economists’ salaries reflect productivity

We study salaries of economics faculty at the University of California to determine how publications affect salary. We find that each publication in a top 10 journal has a positive and significant effect on annual base salary of 1.5%, or $2,053. Unlike previous research, our analysis specifies the impact of publications in specific journals. Publications in American Economic Review, Econometrica, and Review of Economics and Statistics have an independent positive effect on salary. Compensation is also affected by faculty rank, seniority, university of employment, and teaching awards. Base salary does not significantly differ by gender, however, gross salary is about 9% lower for women. After controlling for migration and faculty rank, seniority has a negative impact on salary.

► We determine how journal publications affect economists’ salaries.
► We estimate the value of publications in all journals, and highly ranked journals.
► Publications in top 10 journals have a positive effect on faculty salary.
► Each top publication increases yearly salary 1.5%, about $2,053.