Tag Archives: Teacher Wage Gap

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A Consistent Gap

Despite all the rhetoric from Tennessee policymakers about funds for schools and teacher salaries, Tennessee teachers continue to experience a “wage gap.” That is, teachers in Tennessee earn nearly 24% less than similarly educated peers.

The Teacher Wage Gap Persists

The Economic Policy Institute has once again published its analysis of teacher pay relative to the pay of similar professionals and found that at a national level, the wage gap is 23.5%. In Tennessee, that gap is 23.8%. As EPI notes, in 28 states, the gap is greater than 20%. Yes, even when you add the benefits package (typically more generous than in other jobs), the penalty is still well above 10%.

What does this mean, though?

Well, all those stories about a teacher shortage start to make sense. Whether there are more actual vacancies this year than in years past (as seems to be the case in some districts), the issue is being talked about more seriously this year.

The numbers from EPI indicate that the value proposition for teachers just isn’t that great. Combine that with heated political rhetoric about “groomer teachers” and book banning, and you may begin to understand why there aren’t as many qualified educators available and eager to fill all the vacancies.

The Teacher Shortage Crisis is Here

Here’s more from EPI on how they conducted the study:

First, we use Current Population Survey Outgoing Rotation Groups (CPS-ORG) data for the wage analyses. We focus on weekly wages, which avoids comparisons of weekly hours worked or length of the work year (i.e., the “summers off” issue for teachers) between teachers and other college graduates.3 The sample is restricted to full-time workers (working at least 35 hours per week), 18 to 64 years old, with at least a bachelor’s degree. The education restriction is made because teachers today need at least a bachelor’s degree to teach. The sample is further limited to those who reported their wage information directly (i.e., nonresponders whose wage data was imputed by BLS are excluded).

Trends Over Time

In 1979, teachers earned $1,052 per week (in 2021 dollars), which is 22.9% less than the $1,364 earned by other college graduates. The difference in wages between teachers and other college graduates decreased slightly into the mid-1990s, falling to 15.7% in 1996, but then increased considerably during the tight labor markets of the late 1990s into the early 2000s. The wages of nonteacher college graduates jumped by 13.5% from 1996 to 2002 during an unusual time of exceptional wage growth among low-, middle-, and high-wage earners. But inflation-adjusted wages of teachers did not grow strongly during this period, in part because teacher pay is often set by long-term contracts, and public-sector wages are not as volatile (they do not rise and fall as much) as private-sector wages. Teacher weekly wages remained flat in inflation-adjusted terms from 1996 to 2002, increasing just 0.3%, leaving the real average weekly wage of teachers 25.5% less than their college graduate counterparts.

This difference remained fairly consistent, with some ups and downs, throughout the 2000s. But, a significant widening of the wage gap has occurred since 2010 as teacher wages remained relatively flat while wages of other college graduates took off. The difference increased by 7.6 percentage points between 2010 and 2021—leaving the average weekly wages of teachers 32.9% behind that of other college graduates by 2021, the largest difference recorded in our series. 

Now, though, we’re still looking at wage gaps of around 24% – in part due to a tight labor market in other professions increasing overall salaries. Of course, available federal stimulus funds and states with budget surpluses have meant some increases in teacher compensation – still, it is not enough to achieve anything like parity with other professions.

As EPI notes:

Generally, the teacher wage penalty has been on a worsening trajectory since the mid-1990s. A slight shrinking of the gap in 2019 was short lived. It widened again in 2020, to 21.6%, and in 2021, the penalty reached a record 23.5%. That means that, on average, teachers earned just 76.5 cents on the dollar compared with what similar college graduates earned working in other professions—and much less than the relative 93.9 cents on the dollar that teachers earned in 1996.

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The Teacher Pay Penalty

Economic Policy Institute is out with its annual look at the teacher pay penalty. Here’s more:

As we have shown in our more than a decade and a half of work on the topic, there has been a long-trending erosion of teacher wages and compensation relative to other college graduates.1 Simply put, teachers are paid less (in wages and compensation) than other college-educated workers with similar experience and other characteristics, and this financial penalty discourages college students from entering the teaching profession and makes it difficult for school districts to keep current teachers in the classroom.

Key findings

  • The teacher wage penalty has grown substantially since the mid-1990s. The teacher wage penalty is how much less, in percentage terms, public school teachers are paid in weekly wages relative to other college-educated workers (after accounting for factors known to affect earnings such as education, experience, and state residence). The regression-adjusted teaching wage penalty was 6.0% in 1996. In 2019, the penalty was 19.2%, reflecting a 2.8 percentage-point improvement compared with a penalty of 22.0% a year earlier.
  • The teacher wage penalty declined in the wake of recent teacher strikes but only time and more data will reveal whether teachers’ actions led to a decline and a turning point. The lessening of the teaching penalty from 22.0% in 2018 to 19.2% in 2019 may reflect pay raises enacted in the wake of widespread strikes and other actions by teachers in 2018 and 2019, particularly in some of the states where teacher pay lagged the most. Unfortunately, the data we have to date are not sufficient to allow us to identify the geographic locus of the improvements in teacher wages and benefits and any association with the recent wave of teacher protests and strikes. Only time will tell if this single data point marks a turning point in teacher pay.
  • The wage premium that women teachers experienced in the 1960s and 1970s has been replaced by a significant wage penalty. As noted in our previous research, women teachers enjoyed a 14.7% wage premium in 1960, meaning they were paid 14.7% more than comparably educated and experienced women in other occupations. In 2019, women teachers were earning 13.2% less in weekly wages than their nonteaching counterparts were—a 27.9 percentage-point swing over the last six decades.
  • The wage penalty for men in teaching is much larger than it is for women in the profession, and it too has worsened considerably. The teacher wage penalty for men was 16.6% in 1979. In 2019, male teachers earned 30.2% less than similar male college graduates who chose a different profession. This explains, to a large degree, why only one in four teachers are men.
  • While teacher wage penalties have worsened over time, some of the increase may be attributable to a tradeoff school districts make between pay and benefits. In other words, school districts may not be giving teachers raises but are instead offering stable or slightly better benefits, such that benefits make up a larger share of the overall compensation package for teachers than for other professionals. In 2019, nonwage benefits made up a greater share of total compensation for teachers (29.3%) than for other professionals (21.4%). In 2004, nonwage benefits share of compensation was 20.7% for teachers and 18.7% for other professionals.
  • The benefits advantage of teachers has not been enough to offset the growing wage penalty. The teacher total compensation penalty was 10.2% in 2019 (composed of a 19.2% wage penalty offset by a 9.0% benefits advantage). The bottom line is that the teacher total compensation penalty grew by 7.5 percentage points from 1993 to 2019.
  • The teacher wage penalty exceeds 20% in 21 states and in the District of Columbia. Teacher weekly wage penalties for each state, computed using pooled 2014–2019 data, range from 2.0% in Wyoming to 32.7% in Virginia. In 21 states and the District of Columbia teachers are paid less than 80 cents on the dollar earned by similar college-educated workers.

In Tennessee, the teacher wage penalty is 21.4%

Read more

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A National Leader

According to a recent report, Tennessee’s education policies have resulted in our state becoming a national leader in at least one category. The Learning Policy Institute notes that Tennessee has the highest percentage of 1st- and 2nd-year teachers of any state in the nation. Nearly 20% of Tennessee’s teacher workforce is very new to the profession. That’s well above the national average of 12.7%. When that number is combined with the percentage of uncertified teachers (4.1%), the outlook is not good: Our schools are not retaining experienced teachers. The national average for classrooms staffed by uncertified teachers is 2.6%.

Check out the data:

 

 

Teacher compensation in Tennessee is certainly one factor playing into this challenge. Our teachers are paid 27.3% less than individuals in similarly trained professions. In fact, we have among the highest teacher wage gaps in the country.

Helpfully, the Learning Policy Institute offers some recommendations for improving this situation:

Service scholarships and student loan forgiveness:
The cost of high-quality teacher preparation is a significant obstacle to those considering entering the teaching profession. To overcome such barriers, at least 40 states have established service scholarship and loan forgiveness programs to recruit and retain high-quality teachers. These programs underwrite the cost of teacher preparation in exchange for a number of years of service in the profession. Research has found that effective service scholarship and loan forgiveness programs leverage greater recruitment into professional fields and locations where individuals are needed, and support retention.

High-retention pathways into teaching:
Teacher turnover is higher for those who enter the profession without adequate preparation. However, teachers often choose alternative certification pathways that omit student teaching and some coursework because, without financial aid, they cannot afford to be without an income for the time it takes to undergo teacher training. High-retention pathways are developed to subsidize the cost of teacher preparation and provide high-quality training for incoming teachers. These pathways include teacher residencies and Grow Your Own programs that recruit and prepare community members to teach in local school districts

Mentoring and induction for new teachers:
Evidence suggests that strong mentoring and induction for novice teachers can be a valuable strategy to retain new teachers and improve their effectiveness. Well-mentored beginning teachers are twice as likely to stay in teaching as those who do not receive mentoring. However, the number of states supporting mentoring and induction programs decreased during the recent recession, and a 2016 review of state policies found that just 16 states provide dedicated funding to support teacher induction. Under ESSA, states can leverage federal Title II, Part A funds to support new teacher induction and mentoring. Indeed, a number of states, including Delaware and Ohio, are taking such an approach. Other states have invested state funds to support new teacher induction, including Connecticut and Iowa.

High-quality school principals:
Principals play a central role in attracting and retaining talented teachers. Teachers cite principal support as one of the most important factors in their decision to stay in a school or in the profession. Therefore, states can benefit from building effective systems of preparation and professional development for school leaders. Title II, Part A of ESSA provides states with new opportunities to invest in and improve school leadership in ways that could increase teacher retention, including by reserving up to 3% of their state Title II, Part A funds for school leader development. Many states—including North Dakota and Tennessee—are seizing this opportunity, with nearly half of states using the optional 3% set aside and 21 states using ESSA funds to invest in principal preparation. The North Carolina Principal Fellows program is an example of a long-standing, successful state effort to support principal development.

Competitive compensation:
Not surprisingly, the lack of competitive compensation is one factor that frequently contributes to teacher shortages, affecting the quality and quantity of people planning to become teachers as well whether people decide to leave the teacher workforce. Even after adjusting for the shorter work year in teaching, beginning teachers nationally earn about 20% less than individuals with college degrees in other fields—a wage gap that widens to 30% by mid-career. Large inequities in teacher salaries among districts within the same labor market leave some high-need, under-resourced districts at a strong disadvantage in both hiring and retaining teachers. More competitive compensation can be a critical strategy to recruit and retain effective educators, although different approaches may be necessary depending on the state, regional, and district context.

Recruitment strategies to expand the pool of qualified educators:
In light of fiscal constraints, many states are also opting for low-cost policy solutions that expand the pool of qualified teachers. Such strategies include recruiting recently retired teachers back into the classroom to fill open positions and strengthening licensure reciprocity to ease undue burdens to cross-state mobility and allow experienced and accomplished educators the opportunity to seamlessly transition into service in a different state. Colorado, for example, is actively pursuing both strategies, and Idaho, Oklahoma, and West Virginia are also recruiting retired teachers to help address teacher shortages.

Tennessee should certainly move forward with a serious effort to improve teacher compensation as well as an early career mentoring/induction program. Coupling these two items with meaningful new investments in our schools could make both coming to and staying in teacher a more attractive proposition in our state.

Until then, it’s likely we’ll continue to see teachers leave the profession at higher than the national rate. We simply haven’t been committed to investing in our teachers and it shows.

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Bargain Prices on Teachers in Tennessee

Two years ago, I wrote about the teacher wage gap in Tennessee — the fact that teachers in Tennessee earned nearly 30% less than similarly prepared professionals. Now, the Economic Policy Institute has updated their study of teacher pay relative to other professions.

Guess what?

Tennessee teachers still come at bargain basement prices!

While there is some (slightly) encouraging news, the bottom line: Teacher pay in Tennessee is still not really improving relative to other professions.

This year’s results indicate a national average teacher pay gap of 23.8%. Tennessee’s gap is 27.3%. That’s an improvement of two points for Tennessee, which had a gap of 29.3% two years ago.

That said, Tennessee’s gap is still worse than the national average and among the worst in the Southeast.

Of 12 Southeastern states, Tennessee ranks 8th in teacher pay gap — that’s up one place from 9th two years ago.

Here are the numbers:

Mississippi                   18.9%

South Carolina            20.5%

West Virginia              21.2%

Louisiana                     23.5%

Arkansas                      24.3%

Kentucky                     24.6%

Florida                         25.7%

Tennessee              27.3%

Georgia                       29%

Alabama                     29.4%

Virginia                      33.6%

North Carolina         35.5%

 

Yes, the authors acknowledge that teacher benefit packages tend to be more generous than those offered other professionals. By their analysis, teachers have a benefits package that is a bit more than 7% more generous than similar professionals. The most expensive of these benefits is healthcare, followed by defined-benefit pensions.

Tennessee teacher healthcare benefits vary by district, but for the purpose of this discussion, we’ll assume that Tennessee teachers receive the national average benefits advantage.

Doing so means Tennessee teachers are still paid 20% less than similarly-trained professionals.

While some progress on this front is better than none at all, continuing down this road is not sustainable. Investing in teachers by providing compensation on par with other professions requiring similar education and training is essential to recruitment and retention.

Tennessee’s next Governor and the General Assembly sworn-in in January of 2019 should move past studying the issue and get to work finding long-term solutions to close this gap and pay our teachers the salaries they deserve.

 

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Filling the Wage Gap

Yesterday, I reported on the national wage gap between teachers and other professionals and dug into the data to look at the impact on Tennessee.

It’s pretty disappointing nationally, but the Tennessee numbers are especially disturbing: Below the national average and even about 3 points below the Southeastern average.

We can do better.

Here’s the good news: The Department of Finance and Administration recently released revenue numbers for the fiscal year that ended June 30th. Turns out, we have LOTS of extra money.

Specifically:

Year-to-date revenues for 12 months were $925.0 million more than the budgeted estimate. The general fund recorded revenues in the amount of $852.4 million more than the budgeted estimate, and the four other funds $72.6 million more than the budgeted estimate.

Yes, that’s right, $925 million MORE than we planned on having.

To fully close the wage gap for teachers, we’d need around $500 million which would result in a raise of about $10,000 per teacher.

With this available surplus, Tennessee could become the first state in the nation to close the wage gap completely. And we could do it with $425 million to spare. That’s pretty conservative. Oh, and we could do it without raising a single tax.

An even more conservative approach would be to phase-in wage gap closure over two to three years to ensure revenue is keeping up. That could mean an average raise of about $5000 per teacher in the first year and slightly smaller, but significant raises in successive years.

A move like that would grab national attention. Suddenly, our neighbors in Kentucky and Alabama could no longer say they offer a better value proposition for their teachers.

We would not only deliver on becoming the fastest-improving state in teacher salaries, we’d be doing it in a fiscally responsible, conservative way.

If you’re in college and want to be a teacher, wouldn’t you want to go where you could make just as much as your professional peers? In Tennessee, you’re making 30% less at current numbers. But the budget situation in our state means it doesn’t have to be that way.

The first state in the nation to close the teacher wage gap. It could be Tennessee.

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Teachers! Deep Discounts! 30% off in TN!

A new study of teacher pay relative to pay received by other, similarly-educated workers reveals a growing gap. Not surprisingly, teachers are on the losing end, earning roughly 23% less than their peers in other professions. Here in Tennessee, teachers earn 29.3% less than similarly-prepared professionals.

Tennessee’s wage gap for teachers is among the worst in the Southeast, in fact. The average of 11 southern states is a 26.5% gap, leaving Tennessee nearly three points behind.

Here are the numbers (showing what percentage teachers earn relative to their peers) for states in our region:

Louisiana                              80.5%

South Carolina                    79.2%

Kentucky                              78.8%

Mississippi                           74.8%

Arkansas                               74.8%

Florida                                   74.6%

West Virginia                       74.6%

Alabama                                71.8%

Tennessee                             70.7%

Georgia                                  69.3%

Virginia                                  66.9%

North Carolina                     65.4%

The study also addresses what it calls the “benefits-bias.” This is the fact that teachers and other public employees tend to receive more generous healthcare and retirement benefits than their private sector peers. Currently, that number stands at around 6% nationally in favor of teachers. Tennessee doesn’t have the most generous pension or benefits plan, but it’s likely similar to states in our region. Even if you assume the full 6% for Tennessee teachers, though, our teachers are still paid 23.3% less than their professional peers.

The weighted average teacher salary in Tennessee according to the BEP Review Committee is just under $44,000 a year. To fully close the gap, Tennessee teachers would need an average raise of about $10,000 a year.

While the state legislature has passed four percent BEP salary increases in the past two legislative sessions, those funds don’t always make it into teachers’ paychecks due to the Huffman pay plan and action by the State Board of Education.  

The bottom line: Teacher pay matters. It may not be the only factor impacting who chooses teaching and who stays in teaching, but it certainly is an important one. This report notes the disturbing fact that the pay gap between teaching and other professions is widening. That makes it difficult to encourage college students to consider teaching and it also makes it challenging to keep experienced teachers in the profession. A gap of 5-10% can be offset by the benefits earned by teachers. A nearly 30% gap such as exists in Tennessee is unacceptable. Closing this gap will require a sustained commitment to fund teacher pay at the state level. Alternatively, the value proposition for teachers in Tennessee will continue to lag behind that of our neighboring states, not to mention other professionals.

For now, school systems and the state can continue to hire teachers at deep discounts — nearly 30% off! While that may seem like a good deal, it’s one that will exacerbate teacher shortages and shortchange our students. We must do better.

 

For more on education politics and policy in Tennessee, follow @TNEdReport