Are teachers underpaid? I've been a teacher and sure
felt underpaid. I made more (and worked more) as a principal and now as a business manager. So, what's the real story for teachers? Are they underpaid when compared to:
- Private school teachers?
- Other working professionals?
- Compared to what they could make if they left teaching for another line of work?
Turns out, the answer to all those questions is "no," according to a new
study by the Heritage Foundation and American Enterprise Institute.
The study finds, in fact, that the typical teacher who leaves teaching for another profession actually sees a decrease in salary.
When factors like retirement benefits and substantial time off during the year (teachers typically have 180 scheduled days off per year), teacher benefits are about double what the private sector typically provides.
The study also finds that:
- Public-school teachers earn higher wages than private-school teachers, even when the comparison is limited to secular schools with standard curricula.
- Pension programs for public-school teachers are significantly more generous than the typical private-sector retirement plan, but this generosity is hidden by public-sector accounting practices that allow lower employer contributions than a private-sector plan promising the same retirement benefits.
- Job security for teachers is considerably greater than in comparable professions. Using a model to calculate
the welfare value of job security, we find that job security for typical teachers is worth about an extra 1 percent of wages, rising to 8.6 percent when considering that extra job security protects a premium paid in terms of salaries and benefits.
- We conclude that public-school teacher salaries are
comparable to those paid to similarly skilled private sector
workers, but that more generous fringe benefits
for public-school teachers, including greater job security, make total compensation 52 percent greater than
fair market levels.
I'm a simple man that doesn't usually get into all that silly data (though there's plenty in the study). Instead, I focus on the simple and conceptual explanations.
I know that teachers do a lot more work than most private-sector workers at a similar salary level, at least during the school year. It takes a lot of time to prepare lessons and review student progress. I also know that the public largely thinks teachers are underpaid.
So, independent of any data showing how public school teacher pay compares to other professions, why aren't teachers paid more, especially if what they do is seen as so valuable by the public?
It comes down to the same rules that set price for all goods and services in the world: supply and demand. There is a large supply of people who are willing to teach for what the market is currently paying. The study makes the point that it is likely that even reducing teacher pay would not likely result in a shortage of teachers.
What we are short on is excellent teachers. If schools were freed from collective bargaining and could compensate teachers based on the factors that really matter (student achievement, parent satisfaction, quality instruction) instead of just longevity and the degrees a person has, pay for excellent teachers would increase. We'd see more excellent people turn to teaching. Pay for sub-standard educators would fall, and we'd therefore see fewer of those teachers remaining in the profession, once they find that they have to do a lot more work for not more pay.
Unfortunately, that's not the case today. Poor teachers are, according to the study, compensated at 52 percent above the market rate for similarly skilled workers outside of education. Excellent teachers are compensated exactly like poor ones. The incentives are therefor exactly wrong. Traditional public school pay scales encourage poor teachers to remain teaching and encourage excellent ones to look elsewhere.
Reform is needed.