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Do Higher Salaries Buy Better Teachers?

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Author Info
Eric A. Hanushek
John F. Kain
Steven G. Rivkin

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Abstract

Important policy decisions rest on the relationship between teacher salaries and the quality of teachers, but the evidence about the strength of any such relationship is thin. This paper relies upon the matched panel data of the UTD Texas School Project to investigate how shifts in salary schedules affect the composition of teachers within a district. The panel data permit separation of shifts in salary schedules from movement along given schedules, and thus the analysis is much more closely related to existing policy proposals. In analyses both of teacher mobility and of student performance, teacher salaries are shown to have a modest impact. Teacher mobility is more affected by characteristics of the students (income, race, and achievement) than by salary schedules. Salaries are also weakly related to performance on teacher certification tests appearing to be relevant only in districts doing high levels of hiring, but preliminary examination shows that the certification tests are not significantly related to student achievement. The only significant relationship between salaries and student achievement holds (implausibly) for existing experienced teachers and not for new hires or for probationary teachers.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7082.

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Date of creation: Apr 1999
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Handle: RePEc:nbr:nberwo:7082

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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J4 - Labor and Demographic Economics - - Particular Labor Markets

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Flyer, Fredrick & Rosen, Sherwin, 1997. "The New Economics of Teachers and Education," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages S104-39, January. [Downloadable!] (restricted)
    Other versions:
  2. Grogger, Jeff, 1996. "Does School Quality Explain the Recent Black/White Wage Trend?," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 231-53, April. [Downloadable!] (restricted)
  3. Hanushek, Eric A. & Pace, Richard R., 1995. "Who chooses to teach (and why)?," Economics of Education Review, Elsevier, vol. 14(2), pages 101-117, June. [Downloadable!] (restricted)
  4. Boardman, Anthony E. & Darling-Hammond, Linda & Mullin, Stephen P., 1982. "A framework for the analysis of teachers' demand and supply," Economics of Education Review, Elsevier, vol. 2(2), pages 127-155, April. [Downloadable!] (restricted)
  5. Eric A. Hanushek & Steven G. Rivkin & Lori L. Taylor, 1996. "Aggregation and the Estimated Effects of School Resources," NBER Working Papers 5548, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Ballou, Dale, 1996. "Do Public Schools Hire the Best Applicants?," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 97-133, February. [Downloadable!] (restricted)
  7. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February. [Downloadable!] (restricted)
    Other versions:
  8. Chambers, Jay G., 1977. "The impact of collective bargaining for teachers on resource allocation in public school districts," Journal of Urban Economics, Elsevier, vol. 4(3), pages 324-339, July. [Downloadable!] (restricted)
  9. Brown, Byron W & Saks, Daniel H, 1975. "The Production and Distribution of Cognitive Skills within Schools," Journal of Political Economy, University of Chicago Press, vol. 83(3), pages 571-93, June. [Downloadable!] (restricted)
  10. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, 03. [Downloadable!] (restricted)
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  11. John F. Kain & Kraig Singleton, 1996. "Equality of education opportunity revisited," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 87-114. [Downloadable!]
  12. Dolton, Peter J & van der Klaauw, Wilbert, 1995. "Leaving Teaching in the UK: A Duration Analysis," Economic Journal, Royal Economic Society, vol. 105(429), pages 431-44, March. [Downloadable!] (restricted)
  13. Hoxby, Caroline Minter, 1996. "How Teachers' Unions Affect Education Production," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 671-718, August. [Downloadable!] (restricted)
  14. Brewer, Dominic J, 1996. "Career Paths and Quit Decisions: Evidence from Teaching," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 313-39, April. [Downloadable!] (restricted)
  15. Rumberger, Russell W., 1987. "The impact of salary differentials on teacher shortages and turnover: The case of mathematics and science teachers," Economics of Education Review, Elsevier, vol. 6(4), pages 389-399, August. [Downloadable!] (restricted)
  16. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1998. "Does Special Education Raise Academic Achievement for Students with Disabilities?," NBER Working Papers 6690, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Baugh, William H. & Stone, Joe A., 1982. "Mobility and wage equilibration in the educator labor market," Economics of Education Review, Elsevier, vol. 2(3), pages 253-274, June. [Downloadable!] (restricted)
  18. Julian R. Betts, 1996. "Is There a Link Between School Inputs and Earnings? Fresh Scrutiny of an Old Literature," University of California at San Diego, Economics Working Paper Series 96-09, Department of Economics, UC San Diego. [Downloadable!]
  19. Hanushek, E.A.omson, W., 1996. "Assessing the Effects of School Resources on Student Performance : An Update," RCER Working Papers 424, University of Rochester - Center for Economic Research (RCER).
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Stefan Denzler & Stefan C. Wolter, 2009. "Laufbahnentscheide im Lehrberuf aus bildungsökonomischer Sicht," Economics of Education Working Paper Series 0041, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
  2. Angrist, Joshua D. & Guryan, Jonathan, 2005. "Does Teacher Testing Raise Teacher Quality? Evidence from State Certification Requirements," IZA Discussion Papers 1500, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Hendrik Jürges & Wolfram Richter & Kerstin Schneider, 2004. "Teacher Quality and Incentives: Theoretical and Empirical Effects of Standards on Teacher Quality," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  4. 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. [Downloadable!]
  5. Daniel Aaronson & Lisa Barrow & William Sander, 2002. "Teachers and student achievement in the Chicago public high schools," Working Paper Series WP-02-28, Federal Reserve Bank of Chicago. [Downloadable!]
    Other versions:
  6. Rosalind Levacic & Stephen Machin & David Reynolds & Anna Vignoles & James Walker, 2000. "The Relationship between Resource Allocation and Pupil Attainment: A Review," CEE Discussion Papers 0002, Centre for the Economics of Education, LSE. [Downloadable!]
  7. Kaoru Nabeshima, 2003. "Raising the quality of secondary education in East Asia," Policy Research Working Paper Series 3140, The World Bank. [Downloadable!]
  8. Justina A.V. Fischer, 2005. "The Impact of Direct Democracy on Public Education: Performance of Swiss Students in Reading," University of St. Gallen Department of Economics working paper series 2005 2005-10, Department of Economics, University of St. Gallen. [Downloadable!]
  9. Wolter, Stefan C. & Denzler, Stefan, 2003. "Wage Elasticity of the Teacher Supply in Switzerland," IZA Discussion Papers 733, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Daniel Millimet; Vasudha Rangaprasad, 2004. "Strategic Competition Amongst Public Schools," Econometric Society 2004 North American Summer Meetings 197, Econometric Society. [Downloadable!]
    Other versions:
  11. Hendrik Jürges & Kerstin Schneider, 2007. "Fair ranking of teachers," Empirical Economics, Springer, vol. 32(2), pages 411-431, May. [Downloadable!] (restricted)
  12. Amodio, Francesco, 2009. "On Teachers Quality Decline," MPRA Paper 15796, University Library of Munich, Germany. [Downloadable!]
  13. Donald Boyd & Hamilton Lankford & Susanna Loeb & James Wyckoff, 2005. "Explaining the Short Careers of High-Achieving Teachers in Schools with Low-Performing Students," American Economic Review, American Economic Association, vol. 95(2), pages 166-171, May. [Downloadable!]
  14. Bratti, M., 2001. "Does the choice of university matter? A study of the differences across uk universities in life sciences students' degree performance," The Warwick Economics Research Paper Series (TWERPS) 584, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  15. Paul Glewwe & Nauman Ilias & Michael Kremer, 2003. "Teacher Incentives," NBER Working Papers 9671, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Donald Boyd & Hamilton Lankford & Susanna Loeb & James Wyckoff, 2003. "Analyzing the Determinants of the Matching Public School Teachers to Jobs: Estimating Compensating Differentials in Imperfect Labor Markets," NBER Working Papers 9878, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Maresa, SPRIETSMA & Fabio, WALTENBERG, 2005. "The impact of teachersÕ wages on studentsÕ performance in the presence of heterogeneity and endogeneity. Evidence from Brazil," Discussion Papers (ECON - Département des Sciences Economiques) 2005008, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
  18. Geeta Kingdon & Francis Teal, 2004. "Does performance related pay for teachers improve student performance? Some evidence from India," Development and Comp Systems 0409009, EconWPA. [Downloadable!]
    Other versions:
  19. Fischer, Justina A.V., 2007. "The Impact of Direct Democracy on Public Education: Evidence for Swiss Students in Reading, Mathematics and Natural Science," Working Paper Series in Economics and Finance 688, Stockholm School of Economics. [Downloadable!]
  20. Elizabeth Webster & Mark Wooden & Gary Marks, 2004. "Reforming the Labour Market for Australian Teachers," Melbourne Institute Working Paper Series wp2004n28, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  21. Arnaud Chevalier & Peter Dolton & Steven McIntosh, 2002. "Recruiting and Retaining Teachers in the UK: An Analysis of Graduate Occupation Choice from the 1960s to the 1990s," CEE Discussion Papers 0021, Centre for the Economics of Education, LSE. [Downloadable!]
    Other versions:
  22. Bruce Sacerdote, 2000. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," NBER Working Papers 7469, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  23. Charles Clotfelter & Elizabeth Glennie & Helen Ladd & Jacob Vigdor, 2006. "Would Higher Salaries Keep Teachers in High-Poverty Schools? Evidence from a Policy Intervention in North Carolina," NBER Working Papers 12285, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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