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Are Presidents Worth It??

Aurora Brief Reviews No. 03 February 5 2019

February 2019

In The Review of Higher Education, scholars from i.a. Florida State University has analysed the correlation between how much the university president earns and how well the university does in revenue both from the public and private sources. Using administrative salary data from The Chronicle of Higher Education, their study “Presidential Compensation and Institutional Revenues” implemented ordinary least squares regression with fixed effects and temporally adjusted outcome variables while controlling for institutional and state attributes. They found no evidence of a relationship between presidential compensation and revenue generation from increased fundraising or state appropriations. People familiar with statistics know we like to see an upwardly inclined “cigar” in scatter plots for the correlation between presidential income and public and private income. But here the conclusion is obvious “
No cigar!!”

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