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Abstract

Market forces have driven American higher education from a public good regime to an academic capitalist regime. To examine how this regime shift influences the quality of business education in the US, we use field of specialty, institutional characteristics, demographics, and personal achievements to predict faculty income from inside and outside the institution of employment. We find that inside and outside incomes conflict with each other in that variables measuring faculty quality are positively related to inside income, but negatively related to outside income. This implies that the regime shift brings potential damage to the quality of American business education as outside income creates competing incentives with inside income.

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