This paper examines the disincentive effects of perceived underpayment on individuals' exerted effort and promotion. To this end we develop a theoretical framework and obtain empirical evidence by analysing British academia data. We find that, tenured academics will tend to invest less effort in...

This paper examines the disincentive effects of perceived underpayment on individuals' exerted effort and promotion. To this end we develop a theoretical framework and obtain empirical evidence by analyzing British academia data. We find that, tenured academics will tend to invest less effort in...