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Location Effects and the Determination of Beginning Teacher Salaries: Evidence from Ohio

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Author Info
Gary A. Wagner, Tod S. Porter
Abstract

This paper provides a new treatment of district location in modeling the determinants of teacher salaries by incorporating the methodology of spatial econometrics. Using a location weighting variable, we examine how starting teacher salaries in one district are influenced by other districts' starting salaries in the region. We find that a $1 increase in average beginning teacher salaries of a district's neighbors generates an own salary increase in average teacher salaries ranging from $0.51 to $0.96. In order to completely account for the spillover effects present, the specification of the location variable must incorporate both the size and distance of neighboring districts.

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Article provided by Taylor and Francis Journals in its journal Education Economics.

Volume (Year): 8 (2000)
Issue (Month): 2 (August)
Pages: 109-127
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Handle: RePEc:taf:edecon:v:8:y:2000:i:2:p:109-127

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  1. Feldstein, Martin S, 1975. "Wealth Neutrality and Local Choice in Public Education," American Economic Review, American Economic Association, vol. 65(1), pages 75-89, March. [Downloadable!] (restricted)
  2. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-96, June.
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  3. Ronald G. Ehrenberg & Joshua L. Schwarz, 1987. "Public Sector Labor Markets," NBER Working Papers 1179, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Theobald, Neil D. & Gritz, R. Mark, 1996. "The effects of school district spending priorities on the exit paths of beginning teachers leaving the district," Economics of Education Review, Elsevier, vol. 15(1), pages 11-22, February. [Downloadable!] (restricted)
  5. Burnell, Barbara S, 1991. " The Effect of School District Structure on Education Spending," Public Choice, Springer, vol. 69(3), pages 253-64, March.
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