SEX DISCRIMINATION AND AFFIRMATIVE ACTION IN FACULTY SALARIES

A counterfactual model is used to determine if sex discrimination in salaries existed at Illinois State University. The analysis makes use of detailed peer evaluations of each faculty members's productivity in scholarly productivity, teaching, and service. The model is extended to examine the effects of Affirmative Action salary increments given female faculty members. Evidence of sex discrimination in salaries against female faculty is found. The Affirmative Action salary program erased this discrimination and introduced statistically significant discrimination against male faculty.     

SOME EVIDENCE ON LUMP SUM VERSUS CONVEX COSTS OF CHANGING PRICES

Two models in which price stickiness results from price adjustment costs are tested. One, an (s,S) pricing model, assumes lump-sum adjustment costs and predicts firms will make relatively large, infrequent price changes. The other assumes convex adjustment costs and predicts frequent, partial price adjustments. Survey data of firms' price behavior reveal patterns consistent with the (s,S) model. However, many of the patterns are also consistent with partial-adjustment rules, although the high percentage of firms which fix prices for a quarter or more casts doubt on the plausibility of the partial-adjustment hypothesis.