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Do More Effective Teachers Earn More Outside the Classroom?

Author

Listed:
  • Matthew M. Chingos

    (Brookings Institution)

  • Martin R. West

    (Harvard Graduate School of Education)

Abstract

We examine earnings records for more than 130,000 classroom teachers employed by Florida public schools between the 2001–2 and 2006–7 school years, roughly 35,000 of whom left the classroom during that time. A majority of those leaving the classroom remained employed by public school districts. Among teachers in grades 4–8 leaving for other industries, a 1 standard deviation increase in estimated value added to student math and reading achievement is associated with 6–8 percent higher earnings outside teaching. The relationship between effectiveness and earnings is stronger in other industries than it is for the same groups of teachers while in the classroom, suggesting that current teacher compensation systems do not fully account for the higher opportunity wages of effective teachers. © 2012 Association for Education Finance and Policy

Suggested Citation

  • Matthew M. Chingos & Martin R. West, 2012. "Do More Effective Teachers Earn More Outside the Classroom?," Education Finance and Policy, MIT Press, vol. 7(1), pages 8-43, January.
    • Handle: RePEc:tpr:edfpol:v:7:y:2012:i:1:p:8-43
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/EDFP_a_00052
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    Citations

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    Cited by:

    1. Hanushek, Eric A. & Rivkin, Steven G. & Schiman, Jeffrey C., 2016. "Dynamic effects of teacher turnover on the quality of instruction," Economics of Education Review, Elsevier, vol. 55(C), pages 132-148.
    2. Clare Leaver & Owen Ozier & Pieter Serneels & Andrew Zeitlin, 2021. "Recruitment, Effort, and Retention Effects of Performance Contracts for Civil Servants: Experimental Evidence from Rwandan Primary Schools," American Economic Review, American Economic Association, vol. 111(7), pages 2213-2246, July.
    3. Sean Corcoran & Dan Goldhaber, 2013. "Value Added and Its Uses: Where You Stand Depends on Where You Sit," Education Finance and Policy, MIT Press, vol. 8(3), pages 418-434, July.
    4. Markus Nagler & Marc Piopiunik & Martin R. West, 2020. "Weak Markets, Strong Teachers: Recession at Career Start and Teacher Effectiveness," Journal of Labor Economics, University of Chicago Press, vol. 38(2), pages 453-500.
    5. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    6. Maria D. Fitzpatrick & Michael F. Lovenheim, 2014. "Early Retirement Incentives and Student Achievement," American Economic Journal: Economic Policy, American Economic Association, vol. 6(3), pages 120-154, August.
    7. Nagler, Markus & Piopiunik, Marc & West, Martin R., 2015. "Weak Markets, Strong Teachers," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112949, Verein für Socialpolitik / German Economic Association.
    8. Matthew M. Chingos & Martin R. West, 2015. "Which Teachers Choose a Defined Contribution Pension Plan? Evidence from the Florida Retirement System," Education Finance and Policy, MIT Press, vol. 10(2), pages 193-222, March.
    9. Johnston, Andrew C., 2021. "Preferences, Selection, and the Structure of Teacher Pay," IZA Discussion Papers 14831, Institute of Labor Economics (IZA).
    10. Hugh Macartney & Robert McMillan & Uros Petronijevic, 2018. "Teacher Value-Added and Economic Agency," NBER Working Papers 24747, National Bureau of Economic Research, Inc.
    11. Gjefsen, Hege Marie & Gunnes, Trude, 2016. "The effects of School Accountability on Teacher Mobility and Teacher Sorting," MPRA Paper 69664, University Library of Munich, Germany.
    12. Hege Marie Gjefsen & Trude Gunnes, 2015. "School accountability Incentives or sorting?," Discussion Papers 815, Statistics Norway, Research Department.
    13. Kraft, Matthew A. & Brunner, Eric J. & Dougherty, Shaun M. & Schwegman, David J., 2020. "Teacher accountability reforms and the supply and quality of new teachers," Journal of Public Economics, Elsevier, vol. 188(C).
    14. Li Feng & Tim R. Sass, 2017. "Teacher Quality and Teacher Mobility," Education Finance and Policy, MIT Press, vol. 12(3), pages 396-418, Summer.
    15. Schwerdt, Guido & West, Martin R. & Winters, Marcus A., 2017. "The effects of test-based retention on student outcomes over time: Regression discontinuity evidence from Florida," Journal of Public Economics, Elsevier, vol. 152(C), pages 154-169.

    More about this item

    Keywords

    teacher compensation; teacher wages; Florida public schools;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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