IDEAS home Printed from https://ideas.repec.org/p/cpb/discus/316.html
   My bibliography  Save this paper

The effects of higher teacher pay on teacher retention

Author

Listed:
  • Sander Gerritsen
  • Sonny Kuijpers

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Marc van der Steeg

Abstract

This paper investigates the effects of higher teacher pay for secondary school teachers on their teacher retention decision and enrollment in additional schooling. We exploit variation in teacher pay induced by the introduction of a new remuneration policy. This policy provided schools in an urbanized region with extra funds to place a larger share of teachers in a higher salary scale. We exploit this policy in an IV-setup to estimate the effects of higher teacher pay on our outcomes. The main finding is that we find no effects of higher teacher pay on the probability to stay in the teaching profession. The policy however succeeded in keeping a slightly larger share of teachers in the targeted region. In addition, our findings suggest that the policy increased teachers’ enrollment in bachelor or master degree programs from 2.3% to 3.2%. This finding is consistent with the setup of the policy in which one of the criteria for placement in a higher salary scale is that teachers would obtain extra qualifications or gain extra expertise.

Suggested Citation

  • Sander Gerritsen & Sonny Kuijpers & Marc van der Steeg, 2015. "The effects of higher teacher pay on teacher retention," CPB Discussion Paper 316, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:316
    as

    Download full text from publisher

    File URL: https://www.cpb.nl/sites/default/files/publicaties/download/cpb-discussion-paper-316-effects-higher-teacher-pay-teacher-retention.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hendricks, Matthew D., 2014. "Does it pay to pay teachers more? Evidence from Texas," Journal of Public Economics, Elsevier, vol. 109(C), pages 50-63.
    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. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2011. "Teacher Mobility, School Segregation, and Pay-Based Policies to Level the Playing Field," Education Finance and Policy, MIT Press, vol. 6(3), pages 399-438, July.
    4. Clotfelter, Charles & Glennie, Elizabeth & Ladd, Helen & Vigdor, Jacob, 2008. "Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1352-1370, June.
    5. Hendricks, Matthew D., 2015. "Towards an optimal teacher salary schedule: Designing base salary to attract and retain effective teachers," Economics of Education Review, Elsevier, vol. 47(C), pages 143-167.
    6. Marc van der Steeg & Roel van Elk, 2015. "The effect of schooling vouchers on higher education enrollment and completion of teachers: A regression discontinuity analysis," CPB Discussion Paper 305, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 1, number 1, June.
    8. Dolton, Peter J, 1990. "The Economics of UK Teacher Supply: The Graduate's Decision," Economic Journal, Royal Economic Society, vol. 100(400), pages 91-104, Supplemen.
    9. Gilpin, Gregory A., 2011. "Reevaluating the effect of non-teaching wages on teacher attrition," Economics of Education Review, Elsevier, vol. 30(4), pages 598-616, August.
    10. Dolton, Peter J & van der Klaauw, Wilbert, 1995. "Leaving Teaching in the UK: A Duration Analysis," Economic Journal, Royal Economic Society, vol. 105(429), pages 431-444, March.
    11. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1999. "Do Higher Salaries Buy Better Teachers?," NBER Working Papers 7082, National Bureau of Economic Research, Inc.
    12. Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 2, number 2, June.
    13. Charles T. Clotfelter & Helen F. Ladd & Jacob L. Vigdor, 2010. "Teacher Credentials and Student Achievement in High School: A Cross-Subject Analysis with Student Fixed Effects," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    14. Dolton, Peter J., 2006. "Teacher Supply," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 2, chapter 19, pages 1079-1161, Elsevier.
    15. Eric A. Hanushek & EJohn F. Kain & Steven G. Rivkin, 2004. "Why Public Schools Lose Teachers," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    16. Ellen Greaves & Luke Sibieta, 2014. "Estimating the effect of teacher pay on pupil attainment using boundary discontinuities," IFS Working Papers W14/03, Institute for Fiscal Studies.
    17. Marc van der Steeg & Roel van Elk, 2015. "The effect of schooling vouchers on higher education enrollment and completion of teachers: A regression discontinuity analysis," CPB Discussion Paper 305.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    18. Imazeki, Jennifer, 2005. "Teacher salaries and teacher attrition," Economics of Education Review, Elsevier, vol. 24(4), pages 431-449, August.
    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. Sander Gerritsen & Sonny Kuijpers & Marc van der Steeg, 2015. "The effects of higher teacher pay on teacher retention," CPB Discussion Paper 316.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Dinand Webbink & José María Cabrera, 2016. "Do higher salaries yield better teachers and better student outcomes?," Documentos de Trabajo/Working Papers 1604, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    3. Andrew Agopsowicz & Chris Robinson & Ralph Stinebrickner & Todd Stinebrickner, 2020. "Careers and Mismatch for College Graduates: College and Noncollege Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1194-1221.
    4. Jose Maria Cabrera & Dinand Webbink, 2020. "Do Higher Salaries Yield Better Teachers and Better Student Outcomes?," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1222-1257.
    5. Hendricks, Matthew D., 2015. "Towards an optimal teacher salary schedule: Designing base salary to attract and retain effective teachers," Economics of Education Review, Elsevier, vol. 47(C), pages 143-167.
    6. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    7. Hendricks, Matthew D., 2014. "Does it pay to pay teachers more? Evidence from Texas," Journal of Public Economics, Elsevier, vol. 109(C), pages 50-63.
    8. Varga, Júlia, 2013. "A közalkalmazotti béremelés hatása a tanárok pályaelhagyási döntéseire [The effect of a public-sector pay increase on teachers attrition]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 579-600.
    9. Kuenga Choden, 2019. "An ordered probit model on quitting decision of secondary public school teachers in Bhutan," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(2), pages 65-78.
    10. Leigh, Andrew, 2012. "Teacher pay and teacher aptitude," Economics of Education Review, Elsevier, vol. 31(3), pages 41-53.
    11. Greaves, Ellen & Sibieta, Luke, 2019. "Constrained optimisation? Teacher salaries, school resources and student achievement," Economics of Education Review, Elsevier, vol. 73(C).
    12. Marine de Talancé, 2015. "Better Teachers, Better Results? Evidence from Rural Pakistan," Working Papers DT/2015/21, DIAL (Développement, Institutions et Mondialisation).
    13. Willén, Alexander, 2021. "Decentralization of wage determination: Evidence from a national teacher reform," Journal of Public Economics, Elsevier, vol. 198(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. Cowan, James & Goldhaber, Dan, 2018. "Do bonuses affect teacher staffing and student achievement in high poverty schools? Evidence from an incentive for national board certified teachers in Washington State," Economics of Education Review, Elsevier, vol. 65(C), pages 138-152.
    16. Gilpin, Gregory A., 2012. "Teacher salaries and teacher aptitude: An analysis using quantile regressions," Economics of Education Review, Elsevier, vol. 31(3), pages 15-29.
    17. Dora Gicheva, 2022. "Altruism and Burnout: Long Hours in the Teaching Profession," ILR Review, Cornell University, ILR School, vol. 75(2), pages 427-457, March.
    18. Sorensen, Lucy C. & Holt, Stephen B., 2021. "Sorting it Out: The Effects of Charter Expansion on Teacher and Student Composition at Traditional Public Schools," Economics of Education Review, Elsevier, vol. 82(C).
    19. Chen, Dandan, 2009. "The economics of teacher supply in Indonesia," Policy Research Working Paper Series 4975, The World Bank.
    20. Burgess, Simon, 2016. "Human Capital and Education: The State of the Art in the Economics of Education," IZA Discussion Papers 9885, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cpb:discus:316. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cpbgvnl.html .

    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.