Adjusted State Teacher Salaries and the Decision to Teach

42 Pages Posted: 27 Apr 2015

See all articles by Dan S. Rickman

Dan S. Rickman

Oklahoma State University - Stillwater - Department of Economics & Legal Studies in Business

Hongbo Wang

Oklahoma State University - Stillwater

John V. Winters

Iowa State University - Department of Economics

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 affects the share of education majors that are employed as teachers at the time of the survey.

Keywords: teachers, teacher salaries, teaching profession, teacher retention

JEL Classification: H75, I20, I28, J24, J31, R23

Suggested Citation

Rickman, Dan S. and Wang, Hongbo and Winters, John V., Adjusted State Teacher Salaries and the Decision to Teach. IZA Discussion Paper No. 8984. Available at SSRN: https://ssrn.com/abstract=2598924

Dan S. Rickman (Contact Author)

Oklahoma State University - Stillwater - Department of Economics & Legal Studies in Business ( email )

201 Business Building
Stillwater, OK 74078-0555
United States

Hongbo Wang

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

John V. Winters

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

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