Teachers earn similar wages — and much higher benefits — when compared to similarly skilled private-sector workers, concludes a study released in November by Jason Richwine of The Heritage Foundation and Andrew Biggs of the American Enterprise Institute. Including benefits, teachers make $1.52 for every dollar earned by similarly skilled workers in the private sector.
Comparing teachers to private-sector workers with similar levels of education misses the difference in cognitive skills, they argue. The study measured teachers’ reading and math skills on the Armed Forces Qualification Test (AFQT) and found “teachers are paid commensurately with their cognitive skills.”
Teaching requires “important organizational and interpersonal skills that formal tests may not capture,” they concede. However, these skills should be valuable in other jobs as well.
If teachers are not fairly paid for their non-cognitive skills, one would expect teachers who shifted to private-sector jobs to receive significant raises. But they do not. Using data from the Census Bureau’s Survey of Income and Program Participation, we are able to track changes in individuals’ salaries as they switch jobs. We have shown that the average public-school teacher suffers a slight wage decrease upon leaving the profession.
Paying all teachers more money won’t improve teacher quality, they argue.
What is needed is a more rational system that pays teachers according to their performance, encouraging the best teachers to stay and the least effective teachers to leave the profession.
Public school administrators rarely have the flexibility to do this, they write.