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Competition And Teacher Pay

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  • LORI L. TAYLOR

Abstract

Competition‐based school reform could have a significant impact on teacher earnings. If school districts behave as typical oligopsonists, then increased competition could lead to higher salaries. However, if teachers receive a share of the economic rents generated by the monopoly power of school districts, then increased competition could lower teacher salaries. This study uses panel data from 670 Texas school districts and more than 335,000 teachers to examine the relationship between school competition and teacher pay. The analysis suggests that an increase in competition results in higher wages for most teachers but lower wages for teachers in relatively concentrated markets. (JEL I2, J3)

Suggested Citation

  • Lori L. Taylor, 2010. "Competition And Teacher Pay," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 603-620, July.
    • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:3:p:603-620
    DOI: 10.1111/j.1465-7295.2008.00130.x
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The market for teachers
      by Adam Ozimek in Modeled Behavior on 2011-03-04 19:05:00
    2. Teacher Labor Supply
      by Adam Ozimek in Modeled Behavior on 2015-03-01 01:27:00

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    Cited by:

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    2. Jacob Fowles, 2016. "Salaries in Space," Public Finance Review, , vol. 44(4), pages 523-548, July.

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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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