Competition and teacher pay

Competition‐based school reform could have a significant impact on teacher earnings. If school districts behave as typical oligopsonists, then increased competition could lead to higher salaries. However, if teachers receive a share of the economic rents generated by the monopoly power of school dis...

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Bibliographic Details
Published in:Economic inquiry 2010-07, Vol.48 (3), p.603-620
Main Author: Taylor, Lori L
Format: Article
Language:English
Subjects:
Allgemein bildende Schule
Compensation and benefits
Competition
Economic aspects
Economic rent
Education reform
Gehalt
Lehrer
Monopolies
School districts
Studies
Teachers
Texas
Wages & salaries
Wettbewerb
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Summary:Competition‐based school reform could have a significant impact on teacher earnings. If school districts behave as typical oligopsonists, then increased competition could lead to higher salaries. However, if teachers receive a share of the economic rents generated by the monopoly power of school districts, then increased competition could lower teacher salaries. This study uses panel data from 670 Texas school districts and more than 335,000 teachers to examine the relationship between school competition and teacher pay. The analysis suggests that an increase in competition results in higher wages for most teachers but lower wages for teachers in relatively concentrated markets. (JEL I2, J3)
ISSN:1465-7295
0095-2583
1465-7295
DOI:10.1111/j.1465-7295.2008.00130.x