Faculty diversity and the starting salaries of business students
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The purpose of this study was to understand if undergraduate business students' experience in a collegiate learning environment that includes interaction with a racially diverse faculty allows them to realize higher starting salaries than students without such experience. Research from this study has the potential to provide business schools with critical information necessary for decision making. Data from a period of three years was accumulated for institutions included in this study from IPEDS, College Scorecard, and The Carnegie Foundation to represent factors relating to the inputs students bring to college, the environment in which they operate during their studies, and the outcomes that result following graduation. The impact of the variable of interest was examined using both Ordinary Least Squares Regression and Fixed Effect Analysis. Using the OLS model the regression analysis identified a statistically significant positive relationship between the racial diversity of the faculty and business student starting salaries at the 1 percent level. The fixed effect regression analysis found no statistically significant relationship between the diversity of faculty and business student starting salary. Ultimately, this study expands the research exploring the importance of the racial diversity of faculty and signifies the importance of further research in this area.
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Ed. D.