

Faculty are paid for doing peer review just like we’re paid for publishing. We’re not paid directly for each of either, but both publishing (research) and peer review (service to the field) are stipulated within our contracts. Arxiv is also free to upload to and isn’t a journal with publication fees.
My merit review this year specifically noted my high volume of peer review for why I exceeded expectations in the 20% service part of my contract. Again I say, faculty are remunerated for peer review. It’s better to do peer review for the service part of my contract than it is to sit on faculty senate. Doing peer review helps my research. It’s a win-win, unless I don’t want to get my full merit raise because i ignored service.