Economics of Science

Main

The more recent developments from the so-called ‘new economics of science’ (Dasgupta & David, 1994) are rooted in the need ‘for an enhanced understanding of the social structures of scientific research to carry out an informed discussion of critical issues regarding economics’ (Sent, 1999, p. 103).

One of the most prominent scholars of the economics of science is Paula Stephan. A significant part of her work has considered the impact of changing ‘market’ conditions on scientific careers. However, she has also collaborated extensively with sociological researchers in developing a broad-based definition of what are considered ‘market factors’, including family and gender dimensions. Stephan uses a human capital framework expanded to include research productivity alongside income as incentives for scientific careers, due to the fact that publishing earns prestige and recognition which is regarded as a form of capital that can be accrued and, in turn, capitalised upon (following Merton and the Matthew effect). In addition, solving puzzles is regarded as an intrinsic reward from research.

Empirical Applications

In a number of studies, research productivity is studied over the life cycle (Stephan, 2013 for a review; Stephan & Levin, 1997). Overall, productivity either declines with age or increases initially with age before declining – with the differences apparently due to scientific field specific conditions (Stephan & Levin, 1997).

Fox and Stephan (2001) found that young researchers have a relatively negative view of their. Expectations of PhDs about their career prospects tends to vary between fields, and also to some extent does the mismatch between these expectations and the ‘reality’ of the careers in these fields in the academy and industry (as far as these can be objectively known). Women tend to have greater preference toward careers in teaching universities than do men, with the authors speculating this is likely to be due to lower expectations about their career opportunities on the part of women. Overall, there may be an information gap between students’ understanding of the possible careers awaiting them and the incentives to attend graduate school. Once again the question of career expectations, and expectations of success, are cut across by gender and by field of science.

Sauermann and Roach (2012) analyse PhD career preferences and the degree to which there is a mismatch between scientists’ desired careers and the career opportunities actually available to them. They investigate the role of PhD advisor encouragement for different career paths. They find an oversupply of PhD graduates wanting a tenured faculty position, coupled with a strong encouragement toward the academic field on the part of advisors. This is despite a decline in interest in research across the term of the PhD, leading to careers outside academic growing in attractiveness. An information gap, between alternative pathways outside academia and the weakening desire to continue with academic research is detected.

Contributions to measurement concepts

Autonomy

Autonomy here is related to directing a lab and to the degree to which research can be directed independently (Stephan & Levin, 1997; Fox & Stephan, 2001).

Salary Levels

Different salary levels in different sectors are discussed as a factor for career decision making and are thus mainly the result of individual preferences.

Scientists’ preferences and Career Prospects

Career preferences are discussed as a combination of different job-characteristics that individuals value. In line with some psychological approaches, Sauermann and Roach (2012) link the self-evaluation of the chances obtaining a preferred job (i.e. research in academia) to the change in preferences: students realized over time that they are not competitive for scarce academic jobs and thus ceased to want them.

Working conditions

Working conditions during the postdoc phase (i.e. longer fixed-term contracts) are assumed to impact career decisions (Fitzenberger & Schulze, 2013).

Training

Fitzenberger and Schulze (2013) discuss the quality and amount of training received during the postdoc phase as a factor for transition probabilities along the academic career.

Social Support, Mentoring

According to Sauermann and Roach (2012) social support in the form of advisor encouragement plays a role for career choice: advisors and departments strongly encourage academic research careers while being less encouraging for other career path (Sauermann & Roach, 2012).

Self-evaluation of Opportunity Structures

The self-evaluation of the opportunity structure relates to the individual assessment of the opportunity structrure in the job-market. In line with some psychological approaches, Sauermann and Roach (2012) link the self-evaluation of the chances obtaining a preferred job (i.e. research in academia) to the change in preferences: students realized over time that they are not competitive for scarce academic jobs and thus ceased to want them.

Productivity

Productivity is the amount of different outputs of work (mostly publications). Higher productivity is related to further career advancement (Pezzoni et al., 2012).

Social capital

Social capital here describes networks related to power and political exchange. Social capital ties with senior disciplinary figures who control selection procedures is associated with career advance in Italy (Pezzoni et al., 2012). In France social capital ties with colleagues in prestigious PSOs is associated with career advance (Pezzoni et al., 2012).

Seniority

Seniority describes relevant career experience and is positively associated with career advance (Pezzoni et al., 2012).

Gender

The gender dimension is as a specific one to take into account when considering obstacles and bottlenecks in research careers and numerous studies have been published on the matter which are currently not covered systematically within this wiki.

Children

For both men and women, having children is negatively associated with career prospects (Fitzenberger & Schulze, 2013).

Institutional support mechanisms

Fitzenberger and Schulze (2013) discuss the role of institutional support mechanisms for pursuing an academic research career using the example of assistant professorship.

Opportunity Structures

Opportunity structures describe the relationship with demand and supply in the labor market independently of the assessment through the individual. There are numerous exemplary hypothesis for the effect of opportunity structures on careers and productivity in science. For example, economic circumstances and social change impact on the demand for research and knowledge, national security challenges, economic competition, public health needs, environmental deterioration bring new opportunities for careers (Sent, 1999). Levels of competition and inequality affect the overall appeal of careers in science by altering entry rate and exit rate (Petersen & Penner, 2014). Historical waves of hiring and non-hiring impact following cohorts, changes in the patterns or volumes of hiring impact performance (Lissoni et al., 2011). Another example are cohort effects: changing labor market conditions at the time of enrolment and ending of the PhD may affect preferences (Sauermann & Roach, 2012).