Description:
Exploring economic value for research output is a crucial but neglected issue and thus is worth gaining attention. Using data concerning the promotion from a medium-ranked university in China during 2011-2019, this paper proposes a novel methodology that combines a regression discontinuity design and the theory of “Value of a Statistical Life” to quantify the monetary value for research output. Our findings suggest that each unit of research score is worth $467 for a promotion to associate professor and $515 for full professors. Based on the rate for full professor, the computed economic values for a publication on ordinary journals, famous journals, and top journals are around $1,538, $5,154, and $20,615, respectively. Additionally, the economic value for a book publication is approximately $7,723. These research outputs are significantly undervalued compared to faculty’s own total income, the income of peers in similar sectors, or the income of peers from other countries’ higher education. Our analysis provides not only insights for incentive system reform for Chinese higher education but also a methodology that can be universally applicable to any higher institutions that use scoring system or set implicit research standards in the promotion and merit process