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The Effects of Policies Concerning Teachers’ Wages on Students’ Performance

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  • Julia Varga

    (Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

Abstract

Using country panel data of student achievement from PISA, 2003-2012 combined with national-level teacher salary data from the OECD; this study investigates if relatively short term -5-years - changes in the level and structure of statutory teacher salaries affect student performance in the European countries. Our results show that there are marked differences between subjects and by the experience of teachers. Higher statutory teacher salaries and larger growth of teacher salaries at the first part of teachers’ career increase students’ maths and science performance, while the effect was less pronounced on reading performance and at the second part of teacher career. Nevertheless, the reason for the lack of the effect of teacher salaries at the second part of teachers’ career may be the result of the lack of data on teachers’ actual salaries.

Suggested Citation

  • Julia Varga, 2017. "The Effects of Policies Concerning Teachers’ Wages on Students’ Performance," Budapest Working Papers on the Labour Market 1701, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:bworkp:1701
    as

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    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. 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, CESifo, Sciences Po;CES;MSH, vol. 26(65), pages 5-55.
    3. Walker, Ian & Zhu, Yu, 2011. "Differences by degree: Evidence of the net financial rates of return to undergraduate study for England and Wales," Economics of Education Review, Elsevier, vol. 30(6), pages 1177-1186.
    4. Stefan C. Wolter & Stefan Denzler, 2004. "Wage elasticity of the teacher supply in Switzerland," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(3-4), pages 387-408.
    5. Woessmann, Ludger, 2011. "Cross-country evidence on teacher performance pay," Economics of Education Review, Elsevier, vol. 30(3), pages 404-418, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    teacher salaries; student performance; international; PISA; random effect; two-step method;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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