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Academic Ability, Earnings, and the Decision to Become a Teacher: Evidence from the National Longitudinal Study of the High School Class of 1972

In: Public Sector Payrolls

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  • Charles F. Manski

Abstract

Perceived shortcomings in the quality of American education at the elementary and secondary school levels have drawn much public attention recently. In particular, concern with the composition of the teacher force has been prominent. Informed assessment of the various proposals for increasing the quality of the teaching force is possible only if we can forecast the extent to which these proposals, if enacted, would influence the occupational choice decisions of high ability young adults. Until now,there has been no basis for making such forecasts.The research reported here examines the relationships between academic ability, earnings, and the decision to become a teacher through analysis of data from a national sample of college graduates. Inspection of the data reveals that the frequency of choice of teaching as an occupation is inversely- related to academic ability. Conditioning on sex and academic ability, the earnings of teachers are much lower, on average, than those of other working college graduates. Conditioning on sex, the earnings of teachers tend to rise only slightly, if at all, with academic ability. An econometric analysis suggests that in the absence of a minimum ability standard, increases in teacher earnings would yield substantial growth in the size of the teaching force but minimal improvement in the average academic ability of teachers. If teacher salaries are not increased, institution of a minimum ability standard would improve the average ability of the teaching force but reduce its size. The average ability of the teaching force can be improved and the size of the teaching force maintained if minimum ability standards are combined with sufficient salary increases. It appears that the average academic ability of teachers can be raised to the average of all college graduates if a minimum SAT score (verbal +math) of 800 is required for teacher certification and teacher salaries are raised by about ten percent over their present levels.
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Suggested Citation

  • Charles F. Manski, 1987. "Academic Ability, Earnings, and the Decision to Become a Teacher: Evidence from the National Longitudinal Study of the High School Class of 1972," NBER Chapters,in: Public Sector Payrolls, pages 291-316 National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:7157
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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters,in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
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    Cited by:

    1. Angrist, Joshua D. & Guryan, Jonathan, 2008. "Does teacher testing raise teacher quality? Evidence from state certification requirements," Economics of Education Review, Elsevier, vol. 27(5), pages 483-503, October.
    2. Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1-2), pages 149-163, February.
    3. Ehrenberg, R.G.Ronald G., 2004. "Econometric studies of higher education," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 19-37.
    4. McFarlin Jr., Isaac, 2007. "Do school teacher parents make a difference?," Economics of Education Review, Elsevier, vol. 26(5), pages 615-628, October.
    5. Cory Koedel & Shawn Ni & Michael Podgursky, 2014. "Who Benefits from Pension Enhancements?," Education Finance and Policy, MIT Press, vol. 9(2), pages 165-192, March.
    6. Geraldo Andrade Da Silva Filho & Cristine Campos De Xavier Pinto & Marcel De Toledo Vieira, 2016. "Does Money Move Teachers?," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 240, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    7. repec:aec:ebooks:12 is not listed on IDEAS
    8. Chen, Dandan, 2009. "The economics of teacher supply in Indonesia," Policy Research Working Paper Series 4975, The World Bank.
    9. Arnaud Chevalier & Peter Dolton & Steven Mcintosh, 2007. "Recruiting and Retaining Teachers in the UK: An Analysis of Graduate Occupation Choice from the 1960s to the 1990s," Economica, London School of Economics and Political Science, vol. 74(293), pages 69-96, February.
    10. Lankford, Hamilton & Wyckoff, James, 1997. "The changing structure of teacher compensation, 1970-1994," Economics of Education Review, Elsevier, vol. 16(4), pages 371-384, October.
    11. Wolfe, Barbara & Wilson, Kathryn & Haveman, Robert, 2001. "The role of economic incentives in teenage nonmarital childbearing choices," Journal of Public Economics, Elsevier, vol. 81(3), pages 473-511, September.
    12. Qin, Fei, 2015. "Global talent, local careers: Circular migration of top Indian engineers and professionals," Research Policy, Elsevier, vol. 44(2), pages 405-420.
    13. Michela Tincani, 2014. "School Vouchers and the Joint Sorting of Students and Teachers," Working Papers 2014-012, Human Capital and Economic Opportunity Working Group.
    14. Podgursky, Michael & Monroe, Ryan & Watson, Donald, 2004. "The academic quality of public school teachers: an analysis of entry and exit behavior," Economics of Education Review, Elsevier, vol. 23(5), pages 507-518, October.

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