Do More Effective Teachers Earn More Outside of the Classroom?
We examine earnings records for 90,000 classroom teachers employed by Florida public schools between the 2001â€“02 and 2006â€“07 school years, roughly 20,000 of whom left teaching during that time. Among grade 4â€“8 teachers leaving for other industries, a 1 standard deviation increase in estimated value-added to student achievement is associated with 6â€“9 percent higher earnings outside of teaching. The relationship between effectiveness and earnings is stronger in other industries than it is for the same teachers while in the classroom, suggesting that existing compensation systems do not account for the higher opportunity wages of effective teachers.
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