A study was conducted using the parity-equity model to investigate variances in faculty salaries at North Dakota State School for Science. The parity-equity model specifies three constructs as determinants of faculty salaries: (1) rational equity factors, including years of professional experience, rank, degree, graduate faculty status, tenure status, years in current rank, and administrative responsibilities; (2) nonrational equity factors, including sex, age, years at university, a 9-month versus a 12-month appointment, and former administrative duties; and (3) marketplace influences, as determined by average faculty salaries by college and by department in eight land grant institutions. The study focused on determining the amount of salary variance attributable to these factors; developing a parsimonious regression model of salary; examining the efforts of the independent variable on salary; developing a recursive path model of salary, a block model of salary, and a nonrecursive model of salary; and analyzing the decomposition of salary differentials. The study found that over 80% of the salary variance could be explained by the rational equity variables, with years of experience having the greatest impact on faculty salaries; and that nearly two-thirds of the $224 salary differential between men and women arose from labor market discrimination. The study report includes background information on the parity-equity model, details the statistical methodologies employed, and provides diagrams depicting the statistic models. (HB)