IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v44y2016i4p523-548.html
   My bibliography  Save this article

Salaries in Space

Author

Listed:
  • Jacob Fowles

Abstract

This article, drawing on a rich panel of administrative data comprising all public school teachers employed in Kentucky from 1997 to 2005, utilizes methods developed in spatial econometrics to test for spatial interdependence in the teacher remuneration policies utilized by public school districts. The results of the best fitting model suggest that a 1 percentage point increase in the salary generosity of a particular district’s distance-weighted neighbors yields a 0.57 percentage point increase in the generosity of salaries within that district, even after controlling for relevant district characteristics and including time and district fixed effects. The results are discussed within the context of state education finance reforms, the school choice movement as well as the continued national focus on improving teacher quality as a primary mechanism to increase student achievement.

Suggested Citation

  • Jacob Fowles, 2016. "Salaries in Space," Public Finance Review, , vol. 44(4), pages 523-548, July.
    • Handle: RePEc:sae:pubfin:v:44:y:2016:i:4:p:523-548
    DOI: 10.1177/1091142115574898
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1091142115574898
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1091142115574898?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John V. Winters, 2011. "Teacher Salaries and Teacher Unions: A Spatial Econometric Approach," ILR Review, Cornell University, ILR School, vol. 64(4), pages 747-764, July.
    2. Jackson, C. Kirabo, 2012. "School competition and teacher labor markets: Evidence from charter school entry in North Carolina," Journal of Public Economics, Elsevier, vol. 96(5), pages 431-448.
    3. 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.
    4. Ballou, Dale, 2001. "Pay for performance in public and private schools," Economics of Education Review, Elsevier, vol. 20(1), pages 51-61, February.
    5. Sean P. Corcoran & William N. Evans & Robert M. Schwab, 2004. "Changing Labor-Market Opportunities for Women and the Quality of Teachers, 1957-2000," American Economic Review, American Economic Association, vol. 94(2), pages 230-235, May.
    6. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1352-1370, June.
    7. Eric Eide, 2004. "The Teacher Labour Market and Teacher Quality," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(2), pages 230-244, Summer.
    8. Meg Streams & J. S. Butler & Joshua Cowen & Jacob Fowles & Eugenia F. Toma, 2011. "School Finance Reform: Do Equalized Expenditures Imply Equalized Teacher Salaries?," Education Finance and Policy, MIT Press, vol. 6(4), pages 508-536, October.
    9. Susanna Loeb & Marianne E. Page, 2000. "Examining The Link Between Teacher Wages And Student Outcomes: The Importance Of Alternative Labor Market Opportunities And Non-Pecuniary Variation," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 393-408, August.
    10. Lena Hensvik, 2012. "Competition, Wages and Teacher Sorting: Lessons Learned from a Voucher Reform," Economic Journal, Royal Economic Society, vol. 122(561), pages 799-824, June.
    11. Linda Babcock & Xianghong Wang & George Loewenstein, 1996. "Choosing the Wrong Pond: Social Comparisons in Negotiations That Reflect a Self-Serving Bias," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(1), pages 1-19.
    12. Robert J. Lemke, 2004. "Estimating the Union Wage Effect for Public School Teachers When All Teachers Are Unionized," Eastern Economic Journal, Eastern Economic Association, vol. 30(2), pages 273-291, Spring.
    13. Millimet, Daniel L. & Rangaprasad, Vasudha, 2007. "Strategic competition amongst public schools," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 199-219, March.
    14. Lori L. Taylor, 2010. "Competition And Teacher Pay," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 603-620, July.
    15. Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
    16. Richard Vedder & Joshua Hall, 2000. "Private School Competition and Public School Teacher Salaries," Journal of Labor Research, Transaction Publishers, vol. 21(1), pages 162-168, January.
    17. Babcock, Linda & Engberg, John & Greenbaum, Robert, 2005. "Wage spillovers in public sector contract negotiations: the importance of social comparisons," Regional Science and Urban Economics, Elsevier, vol. 35(4), pages 395-416, July.
    18. Ghosh, Soma, 2010. "Strategic interaction among public school districts: Evidence on spatial interdependence in school inputs," Economics of Education Review, Elsevier, vol. 29(3), pages 440-450, June.
    19. Gary Wagner & Tod Porter, 2000. "Location Effects and the Determination of Beginning Teacher Salaries: Evidence from Ohio," Education Economics, Taylor & Francis Journals, vol. 8(2), pages 109-127.
    20. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
    21. Jan K. Brueckner, 2003. "Strategic Interaction Among Governments: An Overview of Empirical Studies," International Regional Science Review, , vol. 26(2), pages 175-188, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John V. Winters, 2011. "Teacher Salaries and Teacher Unions: A Spatial Econometric Approach," ILR Review, Cornell University, ILR School, vol. 64(4), pages 747-764, July.
    2. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    3. López-Torres, Laura & Nicolini, Rosella & Prior, Diego, 2017. "Does strategic interaction affect demand for school places? A conditional efficiency approach," Regional Science and Urban Economics, Elsevier, vol. 65(C), pages 89-103.
    4. Hendricks, Matthew D., 2014. "Does it pay to pay teachers more? Evidence from Texas," Journal of Public Economics, Elsevier, vol. 109(C), pages 50-63.
    5. Gibbons, Stephen & Silva, Olmo, 2008. "Urban density and pupil attainment," Journal of Urban Economics, Elsevier, vol. 63(2), pages 631-650, March.
    6. Michela M. Tincani, 2021. "Teacher labor markets, school vouchers, and student cognitive achievement: Evidence from Chile," Quantitative Economics, Econometric Society, vol. 12(1), pages 173-216, January.
    7. Millimet, Daniel L. & Rangaprasad, Vasudha, 2007. "Strategic competition amongst public schools," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 199-219, March.
    8. Jean-Michel Plassard & Nhu Tran Thi Thanh, 2009. "Liberté de choix des élèves et concurrence des établissements : un survey de l'analyse du pilotage des systèmes éducatifs par les quasi-marchés," Revue d'économie industrielle, De Boeck Université, vol. 0(2), pages 99-130.
    9. Eunice S. Han, 2020. "The Myth of Unions’ Overprotection of Bad Teachers: Evidence from the District–Teacher Matched Data on Teacher Turnover," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(2), pages 316-352, April.
    10. Dinand Webbink & José María Cabrera, 2016. "Do higher salaries yield better teachers and better student outcomes?," Documentos de Trabajo/Working Papers 1604, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    11. Leigh, Andrew, 2012. "Teacher pay and teacher aptitude," Economics of Education Review, Elsevier, vol. 31(3), pages 41-53.
    12. Wiswall, Matthew, 2013. "The dynamics of teacher quality," Journal of Public Economics, Elsevier, vol. 100(C), pages 61-78.
    13. Willén, Alexander, 2021. "Decentralization of wage determination: Evidence from a national teacher reform," Journal of Public Economics, Elsevier, vol. 198(C).
    14. Andrew Agopsowicz & Chris Robinson & Ralph Stinebrickner & Todd Stinebrickner, 2020. "Careers and Mismatch for College Graduates: College and Noncollege Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1194-1221.
    15. Jose Maria Cabrera & Dinand Webbink, 2020. "Do Higher Salaries Yield Better Teachers and Better Student Outcomes?," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1222-1257.
    16. Millimet, Daniel L. & Collier, Trevor, 2008. "Efficiency in public schools: Does competition matter?," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 134-157, July.
    17. Richard Cebula & Franklin Mixon & Mark Montez, 2015. "Teachers’ salaries and human capital, and their effects on academic performance: an institution-level analysis of Los Angeles County high schools," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(2), pages 347-356, April.
    18. Cook, Jason B., 2018. "The effect of charter competition on unionized district revenues and resource allocation," Journal of Public Economics, Elsevier, vol. 158(C), pages 48-62.
    19. Dan Goldhaber & Lesley Lavery & Roddy Theobald, 2014. "My End of the Bargain," ILR Review, Cornell University, ILR School, vol. 67(4), pages 1274-1305, October.
    20. Josse Delfgaauw & Robert Dur, 2008. "Incentives and Workers' Motivation in the Public Sector," Economic Journal, Royal Economic Society, vol. 118(525), pages 171-191, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:44:y:2016:i:4:p:523-548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.