Although salary benchmarking is widely used to help set compensation, there has been a lack of attention to the statistical implications of this practice on compensation patterns of peer institutions. We adapt some empirical tools from spatial econometrics to analyze compensation decisions...

While salary benchmarking is widely used to help set compensation, there has been little econometric modeling of peer-group identification and the impacts of benchmarking on the compensation decision. We adapt some empirical tools from spatial econometrics to analyze compensation decisions...