Original Articles
Tax and Expenditure Limitations, Salary Reductions, and Public Employee Turnover
Michael S. Hayes,
Corresponding Author
Michael S. Hayes
He can be reached at michael.hayes@rutgers.edu
Search for more papers by this authorMichael S. Hayes,
Corresponding Author
Michael S. Hayes
He can be reached at michael.hayes@rutgers.edu
Search for more papers by this authorMichael S. Hayes is a Assistant Professor in the Department of Public Policy and Administration at Rutgers University-Camden, 401 Cooper Street Room 302, Camden, New Jersey 08102.
Abstract
This study examines the relationship between salary and employee turnover behavior by analyzing a natural experiment created by the New Jersey Superintendent Salary Cap (NJSSC), which caused salary reductions for 25 percent of NJ superintendents in the initial year. I find that an additional $10,000 reduction in base salary due to the NJSSC corresponds to a 16 percent increase in the likelihood of superintendent turnover. This suggests salary expenditures are important public policy levers to retain employees. This study also contributes to prior research on tax and expenditure limitations (TELs) by documenting one of the first TELs placed directly on public employees.
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