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Salaries in Public Education: the Impact of Geographic Cost-of-Living Differentials

Author

Listed:
  • Gary M. Fournier

    (Florida State University)

  • David W. Rasmussen

    (Florida State University)

Abstract

Salaries in public education are the largest single expenditure of state and local governments. In the absence of absolute standards for evaluating policy, both politicians and interest groups are likely to turn to relative performance measures. These judgments often involve comparisons of expenditure levels among states. In this article we estimate cost-of-living differentials among states and show that the state rankings of salaries in public education change substantially when salaries are adjusted for differences in purchasing power. When interstate expenditure comparisons are employed in the setting of policy goals, it is important to be cognizant of the large variations among states in the cost of living.

Suggested Citation

  • Gary M. Fournier & David W. Rasmussen, 1986. "Salaries in Public Education: the Impact of Geographic Cost-of-Living Differentials," Public Finance Review, , vol. 14(2), pages 179-198, April.
    • Handle: RePEc:sae:pubfin:v:14:y:1986:i:2:p:179-198
    DOI: 10.1177/109114218601400204
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    References listed on IDEAS

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    1. Sahling, Leonard G & Smith, Sharon P, 1983. "Regional Wage Differentials: Has the South Risen Again?," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 131-135, February.
    2. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
    3. Timothy D. Hogan, 1984. "Determinants of Geographic Living-Cost Differentials in the United States: Comment," Land Economics, University of Wisconsin Press, vol. 60(1), pages 115-119.
    4. Richard J. Cebula, 1980. "Determinants of Geographic Living-Cost Differentials in the United States: An Empirical Note," Land Economics, University of Wisconsin Press, vol. 56(4), pages 477-481.
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    Cited by:

    1. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 529-554, July.
    2. Walden, Michael L. & Sogutlu, Zulal, 2001. "Determinants of intrastate variation in teacher salaries," Economics of Education Review, Elsevier, vol. 20(1), pages 63-70, February.
    3. David W. Rasmussen & Gary M. Fournier & Douglas A. Charity, 1989. "The Impact of Cost of Living Differentials on Migration of Elderly People to Florida," The Review of Regional Studies, Southern Regional Science Association, vol. 19(2), pages 48-55, Spring.
    4. Terrance Jalbert & Mercedes Jalbert & Karla Hayashi, 2009. "State Rankings of Cost of Living Adjusted Faculty Compensation," Accounting & Taxation, The Institute for Business and Finance Research, vol. 1(1), pages 121-137.
    5. Walden, Michael L. & Newmark, Craig M., 1995. "Interstate variation in teacher salaries," Economics of Education Review, Elsevier, vol. 14(4), pages 395-402, December.
    6. Kayser, Hilke A., 2000. "Gasoline demand and car choice: estimating gasoline demand using household information," Energy Economics, Elsevier, vol. 22(3), pages 331-348, June.

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