IDEAS home Printed from https://ideas.repec.org/a/bla/indres/v62y2023i4p335-358.html
   My bibliography  Save this article

Quantifying and explaining the decline in public schoolteacher retirement benefits

Author

Listed:
  • Nino Abashidze
  • Robert L. Clark
  • Lee A. Craig

Abstract

We estimate that, between 2000 and 2020, the average initial monthly retirement benefit for teachers retiring with 30 years of service has been reduced by 11.2%, though the decline in benefits varies substantially across the states (the median reduction in the initial benefit was 1.9%). We also find that plans covering only teachers, and plans in which teachers are not in Social Security, have made smaller reductions in the generosity of their pension benefits.

Suggested Citation

  • Nino Abashidze & Robert L. Clark & Lee A. Craig, 2023. "Quantifying and explaining the decline in public schoolteacher retirement benefits," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(4), pages 335-358, October.
    • Handle: RePEc:bla:indres:v:62:y:2023:i:4:p:335-358
    DOI: 10.1111/irel.12329
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/irel.12329
    Download Restriction: no
    File URL: https://libkey.io/10.1111/irel.12329?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John V. Winters, 2011. "Teacher Salaries and Teacher Unions: A Spatial Econometric Approach," ILR Review, Cornell University, ILR School, vol. 64(4), pages 747-764, July.
    2. Claudia Goldin, 1999. "Egalitarianism and the Returns to Education during the Great Transformation of American Education," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 65-94, December.
    3. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
    4. Janet S. Hansen, 2010. "An Introduction to Teacher Retirement Benefits," Education Finance and Policy, MIT Press, vol. 5(4), pages 402-437, October.
    5. Siyan Liu & Jean-Pierre Aubry, 2021. "What Do We Know About Public Teacher Compensation?," Issues in Brief ibslp80, Center for Retirement Research.
    6. Robert L. Clark & Lee A. Craig & John Sabelhaus, 2011. "State and Local Retirement Plans in the United States," Books, Edward Elgar Publishing, number 13685.
    7. Jonah E. Rockoff, 2004. "The Impact of Individual Teachers on Student Achievement: Evidence from Panel Data," American Economic Review, American Economic Association, vol. 94(2), pages 247-252, May.
    8. Giertz, J. Fred & Papke, Leslie E., 2007. "Public Pension Plans: Myths and Realities for State Budgets," National Tax Journal, National Tax Association;National Tax Journal, vol. 60(2), pages 305-323, June.
    9. Michael F. Lovenheim & Alexander Willén, 2019. "The Long-Run Effects of Teacher Collective Bargaining," American Economic Journal: Economic Policy, American Economic Association, vol. 11(3), pages 292-324, August.
    10. Craig, Lee A., 1995. "The Political Economy of Public-Private Compensation Differentials: The Case of Federal Pensions," The Journal of Economic History, Cambridge University Press, vol. 55(2), pages 304-320, June.
    11. Smith, Robert Stewart, 1981. "Compensating Differentials for Pensions and Underfunding in the Public Sector," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 463-468, August.
    12. Moe, Terry M, 1990. "Political Institutions: The Neglected Side of the Story," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 6(0), pages 213-253.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johnston, Andrew C., 2021. "Preferences, Selection, and the Structure of Teacher Pay," IZA Discussion Papers 14831, Institute of Labor Economics (IZA).
    2. Baron, E. Jason, 2018. "The Effect of Teachers’ Unions on Student Achievement in the Short Run: Evidence from Wisconsin’s Act 10," Economics of Education Review, Elsevier, vol. 67(C), pages 40-57.
    3. 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.
    4. Yeşilırmak, Muharrem, 2021. "A theoretical general equilibrium analysis of local teacher labor markets under different compensation regimes," Mathematical Social Sciences, Elsevier, vol. 113(C), pages 25-38.
    5. Robert L. Clark & Lee A. Craig & John Sabelhaus, 2011. "State and Local Retirement Plans in the United States," Books, Edward Elgar Publishing, number 13685.
    6. Marina Adshade, 2012. "Female labour force participation in an era of organizational and technological change," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(3), pages 1188-1219, August.
    7. Splinter, David, 2017. "State pension contributions and fiscal stress," Journal of Pension Economics and Finance, Cambridge University Press, vol. 16(1), pages 65-80, January.
    8. Mr. Rodney Ramcharan, 2002. "Migration and Human Capital Formation: Theory and Evidence From the U.S. High School Movement," IMF Working Papers 2002/123, International Monetary Fund.
    9. Cook, Jason & Lavertu, Stéphane & Miller, Corbin, 2021. "Rent-Seeking through collective bargaining: Teachers unions and education production☆," Economics of Education Review, Elsevier, vol. 85(C).
    10. Kristine L. West, 2015. "Teachers’ Unions, Compensation, and Tenure," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 294-320, April.
    11. Cowen, Joshua M. & Strunk, Katharine O., 2015. "The impact of teachers’ unions on educational outcomes: What we know and what we need to learn," Economics of Education Review, Elsevier, vol. 48(C), pages 208-223.
    12. Graves Jennifer & McMullen Steven & Rouse Kathryn, 2018. "Teacher Turnover, Composition and Qualifications in the Year-Round School Setting," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-27, July.
    13. Murphy, Richard & Weinhardt, Felix & Wyness, Gill, 2021. "Who teaches the teachers? A RCT of peer-to-peer observation and feedback in 181 schools," Economics of Education Review, Elsevier, vol. 82(C).
    14. Howes, Candace & Singh, Ajit, 1995. "Long-term trends in the World economy: The gender dimension," World Development, Elsevier, vol. 23(11), pages 1895-1911, November.
    15. Keller, Elisa, 2019. "Labor supply and gender differences in occupational choice," European Economic Review, Elsevier, vol. 115(C), pages 221-241.
    16. Nakabayashi, Masaki, 2011. "Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s," MPRA Paper 30597, University Library of Munich, Germany.
    17. Alison L. Booth, 2006. "The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?," CEPR Discussion Papers 542, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    18. Anne McDaniel & Thomas DiPrete & Claudia Buchmann & Uri Shwed, 2011. "The Black Gender Gap in Educational Attainment: Historical Trends and Racial Comparisons," Demography, Springer;Population Association of America (PAA), vol. 48(3), pages 889-914, August.
    19. Mitchell, O.S. & Piggott, J., 2016. "Workplace-Linked Pensions for an Aging Demographic," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 865-904, Elsevier.
    20. Holzapfel, Sarah & Janus, Heiner, 2015. "Improving education outcomes by linking payments to results: an assessment of disbursement-linked indicators in five results-based approaches," IDOS Discussion Papers 2/2015, German Institute of Development and Sustainability (IDOS).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:indres:v:62:y:2023:i:4:p:335-358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0019-8676 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.