IDEAS home Printed from https://ideas.repec.org/a/uwp/jhriss/v55y2020i4p1222-1257.html
   My bibliography  Save this article

Do Higher Salaries Yield Better Teachers and Better Student Outcomes?

Author

Listed:
  • Jose Maria Cabrera
  • Dinand Webbink

Abstract

We study the effects of a policy aimed at attracting experienced teachers in primary schools in disadvantaged neighborhoods in Uruguay. Teachers in these schools could earn higher salaries. Program eligibility was based on a poverty index with a cutoff rule. Estimates from regression discontinuity models show that the policy increased teacher experience. Overall, the effect on student outcomes was small. The program may have increased experience in ways that are not strongly associated with improved student outcomes. Consistent with this, we do find achievement gains for students in schools that saw a reduction in the share of very inexperienced teachers.

Suggested Citation

  • 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.
  • Handle: RePEc:uwp:jhriss:v:55:y:2020:i:4:p:1222-1257
    Note: DOI: 10.3368/jhr.55.4.0717-8911R3
    as

    Download full text from publisher

    File URL: http://jhr.uwpress.org/cgi/reprint/55/4/1222
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, March.
    2. 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.
    3. Peter Fredriksson & Björn Öckert & Hessel Oosterbeek, 2013. "Long-Term Effects of Class Size," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 249-285.
    4. Harris, Douglas N. & Sass, Tim R., 2011. "Teacher training, teacher quality and student achievement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 798-812, August.
    5. Papay, John P. & Kraft, Matthew A., 2015. "Productivity returns to experience in the teacher labor market: Methodological challenges and new evidence on long-term career improvement," Journal of Public Economics, Elsevier, vol. 130(C), pages 105-119.
    6. Peter Dolton & Oscar D. Marcenaro-Gutierrez, 2011. "If you pay peanuts do you get monkeys? A cross-country analysis of teacher pay and pupil performance [Discrimination in the market for public school teachers]," Economic Policy, CEPR;CES;MSH, vol. 26(65), pages 5-55.
    7. Thomas J. Kane & Douglas O. Staiger, 2008. "Estimating Teacher Impacts on Student Achievement: An Experimental Evaluation," NBER Working Papers 14607, National Bureau of Economic Research, Inc.
    8. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1593-1660.
    9. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    10. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2011. "Teacher Mobility, School Segregation, and Pay-Based Policies to Level the Playing Field," Education Finance and Policy, MIT Press, vol. 6(3), pages 399-438, July.
    11. 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.
    12. Kenneth Y. Chay & Patrick J. McEwan & Miguel Urquiola, 2005. "The Central Role of Noise in Evaluating Interventions That Use Test Scores to Rank Schools," American Economic Review, American Economic Association, vol. 95(4), pages 1237-1258, September.
    13. Seth Gershenson & Diane Whitmore Schanzenbach, 2016. "Linking Teacher Quality, Student Attendance, and Student Achievement," Education Finance and Policy, MIT Press, vol. 11(2), pages 125-149, Spring.
    14. Daniel Aaronson & Lisa Barrow & William Sander, 2007. "Teachers and Student Achievement in the Chicago Public High Schools," Journal of Labor Economics, University of Chicago Press, vol. 25(1), pages 95-135.
    15. repec:hrv:faseco:30749073 is not listed on IDEAS
    16. Ben Ost, 2014. "How Do Teachers Improve? The Relative Importance of Specific and General Human Capital," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 127-151, April.
    17. Marco Manacorda, 2012. "The Cost of Grade Retention," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 596-606, May.
    18. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    19. Bénabou, Roland & Kramarz, Francis & Prost, Corinne, 2009. "The French zones d'éducation prioritaire: Much ado about nothing?," Economics of Education Review, Elsevier, vol. 28(3), pages 345-356, June.
    20. Lex Borghans & Bas ter Weel & Bruce A. Weinberg, 2008. "Interpersonal Styles and Labor Market Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    21. Edwin Leuven & Mikael Lindahl & Hessel Oosterbeek & Dinand Webbink, 2007. "The Effect of Extra Funding for Disadvantaged Pupils on Achievement," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 721-736, November.
    22. Gilpin, Gregory A., 2011. "Reevaluating the effect of non-teaching wages on teacher attrition," Economics of Education Review, Elsevier, vol. 30(4), pages 598-616, August.
    23. James Heckman & Rodrigo Pinto & Peter Savelyev, 2013. "Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes," American Economic Review, American Economic Association, vol. 103(6), pages 2052-2086, October.
    24. Card, David & Payne, A. Abigail, 2002. "School finance reform, the distribution of school spending, and the distribution of student test scores," Journal of Public Economics, Elsevier, vol. 83(1), pages 49-82, January.
    25. Hanushek, Eric A., 2011. "The economic value of higher teacher quality," Economics of Education Review, Elsevier, vol. 30(3), pages 466-479, June.
    26. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers II: Teacher Value-Added and Student Outcomes in Adulthood," American Economic Review, American Economic Association, vol. 104(9), pages 2633-2679, September.
    27. 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 431-444, March.
    28. Joseph G. Altonji & Robert A. Shakotko, 1987. "Do Wages Rise with Job Seniority?," Review of Economic Studies, Oxford University Press, vol. 54(3), pages 437-459.
    29. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 497-532.
    30. C. Kirabo Jackson & Elias Bruegmann, 2009. "Teaching Students and Teaching Each Other: The Importance of Peer Learning for Teachers," American Economic Journal: Applied Economics, American Economic Association, vol. 1(4), pages 85-108, October.
    31. 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.
    32. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-176, February.
    33. Abraham, Katharine G & Farber, Henry S, 1987. "Job Duration, Seniority, and Earnings," American Economic Review, American Economic Association, vol. 77(3), pages 278-297, June.
    34. Peter Dolton & Wilbert van der Klaauw, 1999. "The Turnover of Teachers: A Competing Risks Explanation," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 543-550, August.
    35. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2010. "Teacher Credentials and Student Achievement in High School: A Cross-Subject Analysis with Student Fixed Effects," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    36. Clotfelter, Charles T. & Ladd, Helen F. & Vigdor, Jacob L., 2007. "Teacher credentials and student achievement: Longitudinal analysis with student fixed effects," Economics of Education Review, Elsevier, vol. 26(6), pages 673-682, December.
    37. C. Kirabo Jackson & Rucker C. Johnson & Claudia Persico, 2016. "The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms," The Quarterly Journal of Economics, Oxford University Press, vol. 131(1), pages 157-218.
    38. Eric A. Hanushek & EJohn F. Kain & Steven G. Rivkin, 2004. "Why Public Schools Lose Teachers," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    39. Sander Gerritsen & Erik Plug & Dinand Webbink, 2017. "Teacher Quality and Student Achievement: Evidence from a Sample of Dutch Twins," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(3), pages 643-660, April.
    40. C. Kirabo Jackson, 2018. "What Do Test Scores Miss? The Importance of Teacher Effects on Non–Test Score Outcomes," Journal of Political Economy, University of Chicago Press, vol. 126(5), pages 2072-2107.
    41. Britton, Jack & Propper, Carol, 2016. "Teacher pay and school productivity: Exploiting wage regulation," Journal of Public Economics, Elsevier, vol. 133(C), pages 75-89.
    42. Frederico Finan & Benjamin A. Olken & Rohini Pande, 2015. "The Personnel Economics of the State," NBER Working Papers 21825, National Bureau of Economic Research, Inc.
    43. Raj Chetty & John N. Friedman & Jonah E. Rockoff, 2014. "Measuring the Impacts of Teachers I: Evaluating Bias in Teacher Value-Added Estimates," American Economic Review, American Economic Association, vol. 104(9), pages 2593-2632, September.
    44. Erik Lindqvist & Roine Vestman, 2011. "The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 101-128, January.
    45. repec:hrv:faseco:30749606 is not listed on IDEAS
    46. van der Klaauw, Wilbert, 2008. "Breaking the link between poverty and low student achievement: An evaluation of Title I," Journal of Econometrics, Elsevier, vol. 142(2), pages 731-756, February.
    47. 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.
    48. Jonah E. Rockoff, 2004. "The Impact of Individual Teachers on Student Achievement: Evidence from Panel Data," American Economic Review, American Economic Association, vol. 94(2), pages 247-252, May.
    49. Eric A. Hanushek & Steven G. Rivkin, 2010. "Generalizations about Using Value-Added Measures of Teacher Quality," American Economic Review, American Economic Association, vol. 100(2), pages 267-271, May.
    50. Joppe de Ree & Karthik Muralidharan & Menno Pradhan & Halsey Rogers, 2018. "Double for Nothing? Experimental Evidence on an Unconditional Teacher Salary Increase in Indonesia," The Quarterly Journal of Economics, Oxford University Press, vol. 133(2), pages 993-1039.
    51. Eric A. Hanushek, 2003. "The Failure of Input-Based Schooling Policies," Economic Journal, Royal Economic Society, vol. 113(485), pages 64-98, February.
    52. Imazeki, Jennifer, 2005. "Teacher salaries and teacher attrition," Economics of Education Review, Elsevier, vol. 24(4), pages 431-449, August.
    53. Wiswall, Matthew, 2013. "The dynamics of teacher quality," Journal of Public Economics, Elsevier, vol. 100(C), pages 61-78.
    54. Yona Rubinstein & James J. Heckman, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matteo Bobba & Tim Ederer & Gianmarco León-Ciliotta & Christopher A. Neilson & Marco Nieddu, 2021. "Teacher compensation and structural inequality: Evidence from centralized teacher school choice in Perú," Economics Working Papers 1788, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Evans,David K. & Yuan,Fei & Filmer,Deon P., 2020. "Are Teachers in Africa Poorly Paid? : Evidence from 15 Countries," Policy Research Working Paper Series 9358, The World Bank.
    3. Grönqvist, Erik & Hensvik, Lena & Thoresson, Anna, 2020. "Teacher career opportunities and school quality," Working Paper Series 2020:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.

    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. 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.
    2. 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..
    3. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    4. Li Feng & Tim R. Sass, 2017. "Teacher Quality and Teacher Mobility," Education Finance and Policy, MIT Press, vol. 12(3), pages 396-418, Summer.
    5. Hendricks, Matthew D., 2015. "Towards an optimal teacher salary schedule: Designing base salary to attract and retain effective teachers," Economics of Education Review, Elsevier, vol. 47(C), pages 143-167.
    6. Johnston, Andrew C., 2021. "Preferences, Selection, and the Structure of Teacher Pay," IZA Discussion Papers 14831, Institute of Labor Economics (IZA).
    7. Cowan, James & Goldhaber, Dan, 2018. "Do bonuses affect teacher staffing and student achievement in high poverty schools? Evidence from an incentive for national board certified teachers in Washington State," Economics of Education Review, Elsevier, vol. 65(C), pages 138-152.
    8. 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.
    9. Papay, John P. & Kraft, Matthew A., 2015. "Productivity returns to experience in the teacher labor market: Methodological challenges and new evidence on long-term career improvement," Journal of Public Economics, Elsevier, vol. 130(C), pages 105-119.
    10. Cook, Jason B. & Mansfield, Richard K., 2016. "Task-specific experience and task-specific talent: Decomposing the productivity of high school teachers," Journal of Public Economics, Elsevier, vol. 140(C), pages 51-72.
    11. Marine de Talancé, 2015. "Better Teachers, Better Results? Evidence from Rural Pakistan," Working Papers DT/2015/21, DIAL (Développement, Institutions et Mondialisation).
    12. Wiswall, Matthew, 2013. "The dynamics of teacher quality," Journal of Public Economics, Elsevier, vol. 100(C), pages 61-78.
    13. Gershenson, Seth, 2021. "Identifying and Producing Effective Teachers," IZA Discussion Papers 14096, Institute of Labor Economics (IZA).
    14. Marc Steeg & Sander Gerritsen, 2016. "Teacher Evaluations and Pupil Achievement Gains: Evidence from Classroom Observations," De Economist, Springer, vol. 164(4), pages 419-443, December.
    15. Brian Jacob & Jonah E. Rockoff & Eric S. Taylor & Benjamin Lindy & Rachel Rosen, 2016. "Teacher Applicant Hiring and Teacher Performance: Evidence from DC Public Schools," NBER Working Papers 22054, National Bureau of Economic Research, Inc.
    16. Thijssen, Maximiliaan W.P. & Rege, Mari & Solheim, Oddny J., 2022. "Teacher relationship skills and student learning," Economics of Education Review, Elsevier, vol. 89(C).
    17. Azam, Mehtabul & Kingdon, Geeta Gandhi, 2015. "Assessing teacher quality in India," Journal of Development Economics, Elsevier, vol. 117(C), pages 74-83.
    18. Hanushek, Eric A. & Rivkin, Steven G. & Schiman, Jeffrey C., 2016. "Dynamic effects of teacher turnover on the quality of instruction," Economics of Education Review, Elsevier, vol. 55(C), pages 132-148.
    19. Hinrichs, Peter, 2021. "What kind of teachers are schools looking for? Evidence from a randomized field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 395-411.
    20. Jacob, Brian A. & Rockoff, Jonah E. & Taylor, Eric S. & Lindy, Benjamin & Rosen, Rachel, 2018. "Teacher applicant hiring and teacher performance: Evidence from DC public schools," Journal of Public Economics, Elsevier, vol. 166(C), pages 81-97.

    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    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:uwp:jhriss:v:55:y:2020:i:4:p:1222-1257. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://jhr.uwpress.org/ .

    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: (email available below). General contact details of provider: http://jhr.uwpress.org/ .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.