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This paper presents on three new styled facts: first, schools of public affairs hire many economists; second, those economists are disproportionately female; and third, salaries in schools of public affairs are, on average, lower than salaries in mainline departments of economics. We seek to understand the linkage, if any, among these facts. We assembled a unique database of over 2,150 faculty salary profiles from the top 50 Schools of Public Affairs in the United States as well as the corresponding Economics and Political Science departments. For each faculty member we obtained salary data to analyze the relationship between scholarly discipline, department placement, gender, and annual salary compensation. We found substantial pay differences based on departmental affiliation, significant differences in citation records between male and female faculty in schools of public affairs, and no evidence that the public affairs discount could be explained by compositional differences with respect to gender, experience or scholarly citations.
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This paper attempts to reconcile the contradictory findings in the debate over school resources and school effectiveness by highlighting the role of aggregation in the presence of omitted variables bias. While data aggregation for well-specified linear models yields unbiased parameter estimates, aggregation alters the magnitude of any omitted variables bias. In general, the theoretical impact of aggregation is ambiguous. In a very relevant special case where omitted variables relate to state differences in school policy, however, aggregation implies clear upward bias of estimated school resource effects. Analysis of High School and Beyond data provides strong evidence that aggregation inflates the coefficients on school resources. Moreover, the pattern of results is not consistent with an errors-in-variables explanation, the alternative explanation for the larger estimated impact with aggregate estimates. Since studies using aggregate data are much more likely to find positive school resource effects on achievement, these results provide further support to the view that additional expenditures alone are unlikely to improve student outcomes.
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