{"id":612,"date":"2011-11-07T18:46:44","date_gmt":"2011-11-07T22:46:44","guid":{"rendered":"http:\/\/coreeducationllc.com\/blog2\/?p=612"},"modified":"2012-04-25T21:08:37","modified_gmt":"2012-04-26T01:08:37","slug":"study-public-school-teachers-are-overcompensated","status":"publish","type":"post","link":"https:\/\/www.coreeducationllc.com\/blog2\/study-public-school-teachers-are-overcompensated\/","title":{"rendered":"Study: Public School Teachers are Overcompensated"},"content":{"rendered":"

The American Enterprise Institute released a paper earlier this week that seeks to prove public school teachers are overcompensated by \u201c52% more than their skills would garner in the private sector.\u201d\u00a0 Traditional estimates of teacher compensation generally compare teacher salaries to the salaries of workers with similar education and experience in the private sector, then adding the value of employer contributions toward fringe benefits\u2014leading to the general conclusion that teachers are underpaid.\u00a0 The authors of the study, Andrew Biggs and Jason Richwine, argue that this type of analysis is incomplete and based on faulty methods.<\/p>\n

Their main argument against the traditional analysis of teacher compensation is that formal educational attainment (degrees acquired or years of education completed) \u201cis not a good proxy for the earnings potential of school teachers.\u201d\u00a0 This is because \u201cteacher skills generally lag behind those of other workers with similar \u2018paper\u2019 qualifications.\u201d<\/p>\n

Their analysis shows that:<\/p>\n

1. The wage gap between teachers and other professionals disappears when both groups are matched on cognitive ability (i.e., SAT and GRE scores).<\/p>\n

2. People who switch from another career to a teaching career increase their wages by 9%.\u00a0 Teachers who switch to non-teaching jobs generally see their wages decrease by 3%.\u00a0 Therefore, teachers are not underpaid.<\/p>\n

Much of the analysis focuses on the \u201cfringe benefits\u201d of public school teachers, such as pension programs, retiree health benefits, and job security.\u00a0 They estimate that retiree health benefits alone adds an additional 10% to the worth of teachers\u2019 wages.\u00a0 Also, job security is estimated to add at least 1% to the value of teachers wages, but can go so far as an 8.6% in value \u201cwhen considering that extra job security protects a premium paid in terms of salaries and benefits.\u201d<\/p>\n

Overall, the authors conclude that public school teacher salaries are comparable to similarly skilled private sector workers, but that the \u201cmore generous\u201d fringe benefits make total compensation 52% greater than fair market values, or equal to $120 billion in \u201covercharges\u201d to taxpayers each year.\u00a0 Therefore, they argue that teacher compensation is fair game for budget cuts, and such cuts would have a minimal effect on teacher recruitment and retention.<\/p>\n

To read the full study, please visit http:\/\/www.aei.org\/paper\/100259<\/a>.
\nFor an alternate viewpoint, see http:\/\/www.theteachersalaryproject.org\/index.php<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The American Enterprise Institute released a paper earlier this week that seeks to prove public school teachers are overcompensated by \u201c52% more than their skills would garner in the private sector.\u201d\u00a0 Traditional estimates of teacher compensation generally compare teacher salaries to the salaries of workers with similar education and experience in the private sector, then Read more about Study: Public School Teachers are Overcompensated<\/span>[…]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[54,119],"class_list":["post-612","post","type-post","status-publish","format-standard","hentry","category-politics-policy","tag-policy","tag-teacher-compensation"],"yoast_head":"\nStudy: Public School Teachers are Overcompensated - 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