Journal of Economics and Finance

, Volume 39, Issue 2, pp 347–356 | Cite as

Teachers’ salaries and human capital, and their effects on academic performance: an institution-level analysis of Los Angeles County high schools

  • Richard J. Cebula
  • Franklin G. MixonJr.
  • Mark A. Montez
Article

Abstract

This study re-examines the relationships between school performance (at the high school level) on standardized exams and both teacher pay/salaries and teacher quality, where the latter is measured by teachers’ human capital. To undertake this analysis, we employ Academic Performance Index (API) data from high schools in Los Angeles County (CA) to measure school performance. Heteroscedasticity-consistent OLS results indicate that both teacher pay and teacher quality exercise positive impacts upon school performance. Indeed, an increase from lowest to highest (i.e., over the entire range) of teacher pay and teacher quality, ceteris paribus, generates high school performance increases of approximately three and six percentage points, respectively.

Keywords

Test score performance Teacher salaries Teacher quality Regional focus 

JEL Classification

R23 R28 R29 J24 J45 

References

  1. Babcock P, Bedard K, Schulte J (2012) No cohort left behind? J Urban Econ 71:347–354CrossRefGoogle Scholar
  2. Boyd D, Lankford H, Loeb S, Wyckoff J (2005) Examining the short careers of high-achieving teachers in schools with low-performing students. Am Econ Rev 95:166–171CrossRefGoogle Scholar
  3. Clotfelter CT, Glennie EJ, Ladd HF, Vigdor JL (2008a) Teacher bonuses and teacher retention in low-performing schools: evidence from the North Carolina $1,800 teacher bonus program. Public Financ Rev 36:63–87CrossRefGoogle Scholar
  4. Clotfelter CT, Glennie EJ, Ladd HF, Vigdor JL (2008b) Would higher salaries keep teachers in high-poverty schools? evidence from a policy intervention in North Carolina. J Public Econ 92:1,352–1,370CrossRefGoogle Scholar
  5. Dee TS, Jacob B (2012) The impact of No child left behind on student achievement. J Policy Anal Manag 30:418–446CrossRefGoogle Scholar
  6. Dolton P, Marcenaro-Gutierrez OD (2011) If you pay peanuts do you get monkeys? a cross-country analysis of teacher pay and pupil performance. Economic Policy 26:5–55CrossRefGoogle Scholar
  7. Falch T (2011) Teacher mobility responses to wage changes: evidence from a quasi-natural experiment. Am Econ Rev 101:460–465CrossRefGoogle Scholar
  8. Feng L (2009) Opportunity wages, classroom characteristics, and teacher mobility. South Econ J 75:1,165–1,190Google Scholar
  9. Ferreyra MM, Liang PJ (2012) Information asymmetry and equilibrium monitoring in education. J Public Econ 96:237–254CrossRefGoogle Scholar
  10. Friedman CH (1964) Education of New York City public school teachers: an economic analysis. Ind & Labor Relat Rev 18:20–31CrossRefGoogle Scholar
  11. Gilpin GA (2012) Teacher salaries and teacher aptitude: an analysis using quantile regressions. Econ Educ Rev 31:15–29CrossRefGoogle Scholar
  12. Greenbaum RT (2002) A spatial study of teachers’ salaries in Pennsylvania school districts. J Lab Res 23:69–86CrossRefGoogle Scholar
  13. Hanushek EA (2011) The economic value of higher teacher quality. Econ Educ Rev 30:466–479CrossRefGoogle Scholar
  14. Holmlund H, McNally S, Viarengo M (2010) Does money matter for schools? Econ Educ Rev 29:1,154–1,164CrossRefGoogle Scholar
  15. Landon JH, Baird RN (1971) Monoposony in the market for public school teachers. Am Econ Rev 61:966–979Google Scholar
  16. Larsen SE (2010) Teacher MA attainment rates, 1970-2000. Econ Educ Rev 29:772–782CrossRefGoogle Scholar
  17. Lavy V (2008) Does raising the principal’s wage improve the school’s outcomes? quasi-experimental evidence from an unusual policy experiment in Israel. Scand J Econ 110:639–662CrossRefGoogle Scholar
  18. Lavy V (2009) Performance pay and teachers’ effort, productivity, and grading ethics. Am Econ Rev 99:1,979–2,011CrossRefGoogle Scholar
  19. Leigh A (2012) Teacher pay and teacher aptitude. Econ Educ Rev 31:41–53CrossRefGoogle Scholar
  20. Leigh A, Ryan C (2008) How and why has teacher quality changed in Australia? Aust Econ Rev 41:141–159CrossRefGoogle Scholar
  21. Lin T-C (2010) Teacher salaries and student achievement: the case of Pennsylvania. Appl Econ Lett 17:547–550CrossRefGoogle Scholar
  22. Martin SM (2010) Are public school teacher salaries paid compensating wage differentials for student racial and ethnic characteristics? Educ Econ 18:349–370CrossRefGoogle Scholar
  23. Mixon FG Jr, Salter SP (2008) Legislative pay and legislator quality. Labour Rev of Labour Econ Ind Relations 22:679–695Google Scholar
  24. Mixon FG Jr, Wilkinson JB (1999) Compensation schemes and human capital attainment in congress: is there an adverse selection of legislator attributes? Public Financ Rev 27:418–433CrossRefGoogle Scholar
  25. Muralidharan K, Venkatesh S (2011) Teacher performance pay: experimental evidence from India. J Polit Econ 119:39–77CrossRefGoogle Scholar
  26. Murnane RJ, Olsen RJ (1990) The effects of salaries and opportunity costs on length of stay in teaching. J Hum Resour 25:106–124CrossRefGoogle Scholar
  27. Palia D (2000) The impact of regulation on CEO labor markets. RAND J Econ 31:165–179CrossRefGoogle Scholar
  28. Phuong N-H (2012) Fiscal effects of budget referendums: evidence from New York school districts. Public Choice 150:77–95CrossRefGoogle Scholar
  29. Stinebrickner TR (2001) A dynamic model of teacher labor supply. J Labor Econ 19:196–230CrossRefGoogle Scholar
  30. Vedder R, Hall J (2000) Private school competition and public school teacher salaries. J Lab Res 21:161–168CrossRefGoogle Scholar
  31. Wagner GA, Porter TS (2000) Location effects and the determination of beginning teacher salaries: evidence from Ohio. Educ Econ 8:109–129CrossRefGoogle Scholar
  32. White H (1980) A heteroskedasticity-consistent covariance matrix and a direct test for heteroskedasticity. Econometrica 48:817–838CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • Richard J. Cebula
    • 1
  • Franklin G. MixonJr.
    • 2
  • Mark A. Montez
    • 1
  1. 1.Davis College of BusinessJacksonville UniversityJacksonvilleUSA
  2. 2.Columbus State UniversityColumbusUSA

Personalised recommendations