Public School Teacher Cost Differences Across the United States

Abstract

This document presents findings of a study that used a hedonic wage model to develop a national, geographical teacher cost index (TC1). The research sought to extend the analysis of teacher compensation to include not only variables that reflect the geographic cost-of-living, but also the amenities of the labor markels in which the public school districts are located. Hedonic considerations are those factors that attract workers to an area. The result was an estimated average teacher-salary cost index for each state and for regions in each state. The research drew on a sample of 40,484 public school teachers derived from the Schools and Staffing Survey (SASS) database for 1990-91. The study examined: (1) discretionary factors--the effects of teacher and job characteristics on patterns of variation in teacher salaries; (2) cost factors--the regional and school-district characteristics beyond local control; and (3) teacher cost differences by the type of school district. The TCI model was also compared with two alternative models. The data show a salary difference that favored males; some evidence points to lower salaries being paid to minorities of the same gender. Teachers with higher degree levels received higher salaries. Larger districts in more urbanized settings tended to pay higher teacher salaries for teachers with the same qualifications. The average TCI tended to be lowest in southern states and highest in northeastern states. Large urban school districts tended to have higher teacher costs. Finally, compensating differentials are necessary to attract teachers to remote regions. In conclusion, the TCI includes important factors beyond the costs of living that should be considered in examining how much more or less it costs to rcruit and employ comparable teachers. Appended are technical.notes; descriptive statistics and parameter estimates variables included in teacher salary regressions; and standard errors. Contains 48 references. (LMI) NATIONAL CENTER FOR EDUCATION STATISTICS Analyi5/Me.thodology Report 0 October. 1995 Public School Teacher Cost Differences Across the United States U.S. Department of Education. Office of Educational Research and'improyement NCES 95-758 .