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Monetary returns to academic ability in the public teacher labor market

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  • Player, Daniel
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    Abstract

    Previous research has established the returns to academic ability in the general labor market, and this paper investigates such returns in the teacher labor market. Using a nationally representative sample of public school teachers, I find that teachers who graduate from the most selective undergraduate institutions have salaries that are between 7% and 14% higher than those who graduate from the least selective colleges. An empirical investigation of the source of these returns reveals that the majority of this difference is due to high-ability teachers sorting into higher paying districts, though a non-trivial amount arises from within-district deviations from the salary schedule.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economics of Education Review.

    Volume (Year): 28 (2009)
    Issue (Month): 2 (April)
    Pages: 277-285

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    Handle: RePEc:eee:ecoedu:v:28:y:2009:i:2:p:277-285

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    Web page: http://www.elsevier.com/locate/econedurev

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    Keywords: Human capital Salary wage differentials Teacher salaries;

    References

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    1. Murnane, Richard J & Olsen, Randall J, 1989. "The Effects of Salaries and Opportunity Costs on Duration in Teaching: Evidence from Michigan," The Review of Economics and Statistics, MIT Press, vol. 71(2), pages 347-52, May.
    2. David N. Figlio, 2002. "Can public schools buy better-qualified teachers?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 686-699, July.
    3. Podgursky, Michael & Monroe, Ryan & Watson, Donald, 2004. "The academic quality of public school teachers: an analysis of entry and exit behavior," Economics of Education Review, Elsevier, vol. 23(5), pages 507-518, October.
    4. Donald Boyd & Hamilton Lankford & Susanna Loeb & James Wyckoff, 2003. "Analyzing the Determinants of the Matching Public School Teachers to Jobs: Estimating Compensating Differentials in Imperfect Labor Markets," NBER Working Papers 9878, National Bureau of Economic Research, Inc.
    5. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2010. "Teacher Credentials and Student Achievement in High School: A Cross-Subject Analysis with Student Fixed Effects," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    6. Eric A. Hanushek & John F. Kain & Daniel M. O'Brien & Steven G. Rivkin, 2005. "The Market for Teacher Quality," NBER Working Papers 11154, National Bureau of Economic Research, Inc.
    7. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1999. "Do Higher Salaries Buy Better Teachers?," NBER Working Papers 7082, National Bureau of Economic Research, Inc.
    8. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
    9. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2001. "Why Public Schools Lose Teachers," NBER Working Papers 8599, National Bureau of Economic Research, Inc.
    10. Marigee P. Bacolod, 2007. "Do Alternative Opportunities Matter? The Role of Female Labor Markets in the Decline of Teacher Quality," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 737-751, November.
    11. Richard J. Murnane & Randall J. Olsen, 1990. "The Effects of Salaries and Opportunity Costs on Length of Stay in Teaching: Evidence from North Carolina," Journal of Human Resources, University of Wisconsin Press, vol. 25(1), pages 106-124.
    12. Figlio, David N., 1997. "Teacher salaries and teacher quality," Economics Letters, Elsevier, vol. 55(2), pages 267-271, August.
    13. Dominic J. Brewer & Eric R. Eide & Ronald G. Ehrenberg, 1999. "Does It Pay to Attend an Elite Private College? Cross-Cohort Evidence on the Effects of College Type on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 104-123.
    14. Sean P. Corcoran & William N. Evans & Robert M. Schwab, 2004. "Women, the labor market, and the declining relative quality of teachers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(3), pages 449-470.
    15. Ballou, Dale, 1996. "Do Public Schools Hire the Best Applicants?," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 97-133, February.
    16. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
    17. Darius Lakdawalla, 2001. "The Declining Quality of Teachers," NBER Working Papers 8263, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Gilpin, Gregory A., 2012. "Teacher salaries and teacher aptitude: An analysis using quantile regressions," Economics of Education Review, Elsevier, vol. 31(3), pages 15-29.
    2. David Bravo & Bárbara Flores & Patricia Medrano, 2010. "¿Se premia la habilidad en el mercado laboral docente? ¿Cuánto impacta en el desempeño de los estudiantes?," Working Papers wp327, University of Chile, Department of Economics.
    3. Larsen, S. Eric, 2010. "Teacher MA attainment rates, 1970-2000," Economics of Education Review, Elsevier, vol. 29(5), pages 772-782, October.

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