Relative Teacher Salaries and the Decision to Teach

Abstract

Using the 3‐year microdata sample of the American Community Survey for 2009–2011, we examine the effect of state‐level public school teacher salaries relative to those of other college graduates in the state not employed in education on the decision to teach. We find that relative teacher salaries in the state positively affect the share of education majors that are employed as public school teachers at the time of the survey. The effect for males majoring in math, science, and computer education is largest among all estimated effects. A statistically significant effect is also found among females majoring in elementary education.

JEL Classification: H75, I20, R23