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Returns to Seniority among Public School Teachers

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  • Dale Ballou
  • Michael Podgursky

Abstract

Returns to seniority account for a substantial share of public K-12 expenditures. Over the first ten to 15 years of a career, public school teachers enjoy average wage growth at least equivalent to that of other white-collar workers. Explanations for this structure in terms of human capital or costly monitoring lack theoretical and empirical support. A steeper wage-tenure profile reduces turnover, but it is doubtful that the costs of turnover are high enough to make this an optimal use of school resources. We conclude that the structure of teacher pay in public education is more consistent with rent-seeking than efficient contracting.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 37 (2002)
Issue (Month): 4 ()
Pages: 892-912

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Handle: RePEc:uwp:jhriss:v:37:y:2002:i:4:p:892-912

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer, Springer, vol. 18(4), pages 436-460, August.
  2. Heutel, Garth, 2009. "Testing implications of a tournament model of school district salary schedules," Economics of Education Review, Elsevier, Elsevier, vol. 28(1), pages 143-151, February.
  3. West, Kristine Lamm & Mykerezi, Elton, 2011. "Teachers' unions and compensation: The impact of collective bargaining on salary schedules and performance pay schemes," Economics of Education Review, Elsevier, Elsevier, vol. 30(1), pages 99-108, February.
  4. Eric A. Hanushek & Steven G. Rivkin, 2010. "The Quality and Distribution of Teachers under the No Child Left Behind Act," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 24(3), pages 133-50, Summer.
  5. Winters, John V, 2010. "Teacher Salaries and Teacher Unions: A Spatial Econometric Approach," MPRA Paper 21202, University Library of Munich, Germany.
  6. Brunner, Eric J. & Squires, Tim, 2013. "The bargaining power of teachers’ unions and the allocation of school resources," Journal of Urban Economics, Elsevier, vol. 76(C), pages 15-27.
  7. Barbara Bruns & David Evans & Javier Luque, 2012. "Achieving World-Class Education in Brazil : The Next Agenda," World Bank Publications, The World Bank, number 2383, August.
  8. Martin, Stephanie M., 2010. "The determinants of school district salary incentives: An empirical analysis of, where and why," Economics of Education Review, Elsevier, Elsevier, vol. 29(6), pages 1143-1153, December.
  9. Eric A. Hanushek & Steven G. Rivkin, 2010. "Constrained Job Matching: Does Teacher Job Search Harm Disadvantaged Urban Schools?," NBER Working Papers 15816, National Bureau of Economic Research, Inc.

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