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Adjusted State Teacher Salaries and the Decision to Teach

Author

Listed:
  • Dan S. Rickman

    (Oklahoma State University)

  • Hongbo Wang

    (Oklahoma State University)

  • John V. Winters

    (Oklahoma State University)

Abstract

Using the 3-year sample of the American Community Survey (ACS) for 2009 to 2011, we compute public school teacher salaries for comparison across U.S. states. Teacher salaries are adjusted for state differences in teacher characteristics, cost of living, household amenity attractiveness and federal tax rates. Salaries of non-teaching college graduates, defined as those with occupations outside of education, are used to adjust for state household amenity attractiveness. We then find that state differences in federal tax-adjusted teacher salaries relative those of other college graduates significantly affect the share of education majors that are employed as teachers at the time of the survey.

Suggested Citation

  • Dan S. Rickman & Hongbo Wang & John V. Winters, 2015. "Adjusted State Teacher Salaries and the Decision to Teach," Economics Working Paper Series 1504, Oklahoma State University, Department of Economics and Legal Studies in Business.
    • Handle: RePEc:okl:wpaper:1504
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    File URL: https://business.okstate.edu/site-files/docs/ecls-working-papers/OKSWPS1504.pdf
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    References listed on IDEAS

    as
    1. Jan K. Brueckner & David Neumark, 2014. "Beaches, Sunshine, and Public Sector Pay: Theory and Evidence on Amenities and Rent Extraction by Government Workers," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 198-230, May.
    2. David Albouy, 2008. "Are Big Cities Bad Places to Live? Estimating Quality of Life across Metropolitan Areas," NBER Working Papers 14472, National Bureau of Economic Research, Inc.
    3. Michelle T. Bensi & David C. Black & Michael R. Dowd, 2004. "The Education/Growth Relationship: Evidence from Real State Panel Data," Contemporary Economic Policy, Western Economic Association International, vol. 22(2), pages 281-298, April.
    4. Babcock, Linda & Engberg, John & Greenbaum, Robert, 2005. "Wage spillovers in public sector contract negotiations: the importance of social comparisons," Regional Science and Urban Economics, Elsevier, vol. 35(4), pages 395-416, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    teachers; teacher salaries; teaching profession; teacher retention;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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