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Preferences, Selection, and the Structure of Teacher Pay

Human capital shapes income, inequality, and growth. In the public sphere, human-capital formation depends largely on the selection and retention of teachers. I use a discrete-choice experiment to estimate teacher preferences and link choices to administrative data. High-performing teachers have similar preferences to other teachers, except that they have stronger preferences for jobs offering performance pay. When taking the preference estimates at face value, schools underpay in salary and performance pay while overpaying in retirement under a variety of objectives. The results suggest efficiency gains from restructuring compensation: both teacher welfare and student achievement can be improved.

Teachers, Labor Markets, Compensation, Salaries, Pay-for-performance, Teacher Selection, Teacher Retention
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EdWorkingPaper suggested citation:

Johnston, Andrew C.. (). Preferences, Selection, and the Structure of Teacher Pay. (EdWorkingPaper: 20-202). Retrieved from Annenberg Institute at Brown University:

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