More School Competition Could Raise Teacher Salaries
Contact:
Richard Vedder, 740-593-0142 or vedder@ohio.edu
Attention Editors, Reporters: For the journal article on which this news
release is based, contact Andrea Gibson at (740) 597-2166 or Charlene
Clifford at (740) 593-0946.
ATHENS,
Ohio -- (March 1, 2000) Teachers looking for higher-paying positions should
focus their attention on areas with lots of public and private schools -- where
they could earn as much as $1,000 more a year -- according to a new study on
teacher salaries and school competition. The research suggests more schools
-- especially private schools -- increase competition, which leads to bigger
teacher paychecks.
The work, published in this month's Journal of Labor Research,
examined data from Ohio's 612 public school districts and figures on private school
enrollment. Using a model developed by an Ohio University economist and
lead author of the study, researchers made predictions on the influence of
school competition on wages.
Although an increase in the number of both public and private schools
would spark a salary increase, the model indicates a somewhat stronger
impact from private school competition, says study author Richard Vedder,
distinguished professor of economics at Ohio University. A private school
environment might be a stronger draw than public school employment for some
teachers, he says.
"Other things equal, a teacher is estimated to earn $808 more if there
are a dozen public school districts in a county instead of one," the study
authors wrote. Introduce a private school into a district where there was
none and enroll 20 percent of the students, and the researchers' model
predicts public teacher annual salaries would rise by $1,084. Combine the
two -- a school system with 12 public school districts and 20 percent
enrollment in private school -- and teacher pay would increase by $1,892 a
year.
"The theory is that the more school districts compete for teachers,
the more they'll have to pay to lure them," says Vedder, who published the
study with former Ohio University graduate student Joshua Hall, now an
economist with the Joint Economic Committee of the U.S. Congress.
Though the project focused on Ohio schools, drawing on data
collected by the state Department of Education in 1996 and U.S. Census data
from 1990, the results could have nationwide implications.
"I have a hunch -- and a pretty good one -- that the finding probably
would hold if you tried to extend it to other states," Vedder says. "Ohio is so
typical of the nation on every indicator in the study. We're right in the
middle of teacher salaries among the 50 states."
The study analyzed what impact a number of factors -- such as private
school enrollment, teacher experience and education level, class size and
enrollment, per pupil expenditures and family income and education -- have
on public teacher salaries. While the correlation between private school
enrollment and higher wages wasn't as strong in low-income areas of the state, Vedder says, it was still significant.
Though private school teachers earn about 40 percent less than their
public school counterparts, Vedder expects that the private school
environment, which he says "has different rules and less bureaucracy,"
might draw public teachers. His study didn't analyze private teacher
salaries, but he expects that competition would boost those wages as well.
Vedder, a former public board of education member who favors vouchers,
acknowledges that private school supporters could use his study to win
favor with teachers. "I think proponents of vouchers could take these
results and talk to teachers and say, 'Look, vouchers aren't a threat to
your well-being -- vouchers can improve your well-being because now you'll
have more options of where you can teach,'" he says.
Despite this new information about teacher salaries, teacher unions
still may have reason to campaign against vouchers, Vedder suggests. If more
teachers opt for private school employment, he argues, union membership
could fall, diminishing these organizations' political clout and union
leaders' livelihoods. "I work with people in labor unions, and they're out
fighting for their members, but they also want a good life for themselves,"
he says.
He also theorizes that even if public school teachers enjoyed higher salaries
from private school competition, unions would argue that their
members will lose in the long run. If union power dwindles, Vedder says,
teacher organizations might have a hard time lobbying the legislature for
wage increases, which would erode average salaries in education. And
because Vedder's study doesn't forecast long-term salary trends, it remains
to be seen how private school growth could impact paychecks in the big
picture.
Vedder holds an appointment in the College of Arts and Sciences and is
a faculty associate of the Contemporary History Institute.