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Private School Competition and Public School Teacher Salaries

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  • RICHARD VEDDER
  • JOSHUA HALL

Abstract

Teacher unions have fiercely fought public policy measures (e.g., vouchers, tuition tax credits) that might increase the proportion of students attending private schools. Yet increased competition in the educational service market should also lead to greater labor market competition, reducing any quasi-monopsony tendencies depressing teacher salaries. Using detailed data on over 600 Ohio school districts, we find that increased private school competition leads to higher salaries for public school teachers. It may be that union leaders disregard the interests of their members in trying to maximizing union size and power. An alternative interpretation is that unions sacrifice short-run income gains for their members in order to maintain long-term economic rents associated with substantial political power.

Suggested Citation

  • 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.
    • Handle: RePEc:tra:jlabre:v:21:y:2000:i:1:p:162-168
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    Citations

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    Cited by:

    1. Lori L. Taylor, 2010. "Competition And Teacher Pay," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 603-620, July.
    2. 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.
    3. Rincke, Johannes, 2006. "Competition in the public school sector: Evidence on strategic interaction among US school districts," Journal of Urban Economics, Elsevier, vol. 59(3), pages 352-369, May.
    4. 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.
    5. 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.
    6. Benjamin Scafidi, 2016. "The Dismal Productivity Trend for K-12 Public Schools and How to Improve It," Cato Journal, Cato Journal, Cato Institute, vol. 36(1), pages 121-141, Winter.
    7. 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.
    8. 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.
    9. 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.
    10. Richard J. Cebula & Joshua C. Hall & Maria Y. Tackett, 2017. "Non-public competition and public school performance: evidence from West Virginia," Applied Economics, Taylor & Francis Journals, vol. 49(12), pages 1185-1193, March.
    11. Josse Delfgaauw & Robert Dur, 2009. "From public monopsony to competitive market: more efficiency but higher prices," Oxford Economic Papers, Oxford University Press, vol. 61(3), pages 586-602, July.
    12. Clive Belfield & Celia Brown & Hywel Thomas, 2002. "Workplaces in the Education Sector in the United Kingdom: How do they Differ from those in Other Industries?," Education Economics, Taylor & Francis Journals, vol. 10(1), pages 49-69.
    13. Sandstrom, F. Mikael & Bergstrom, Fredrik, 2005. "School vouchers in practice: competition will not hurt you," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 351-380, February.
    14. Goldhaber, Dan & Destler, Katharine & Player, Daniel, 2010. "Teacher labor markets and the perils of using hedonics to estimate compensating differentials in the public sector," Economics of Education Review, Elsevier, vol. 29(1), pages 1-17, February.
    15. Jacob Fowles, 2016. "Salaries in Space," Public Finance Review, , vol. 44(4), pages 523-548, July.

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