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Lesson 3.8

Teacher Pay:
How Much do Teachers get Paid?

Great teachers should get paid more, right? Unless…

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Teacher pay is by far the largest cost of operating a school.

People choose to become teachers for many reasons, but getting rich is not among them. As a job, teaching is steady, secure work — usually with good benefits. But it doesn't pay very well, especially for new teachers. This lesson explains how teacher pay systems usually work, how teacher pay compares to other work, and some alternative approaches.

Many new teachers struggle to find places they can afford to live, and it is common for teachers to work second jobs.

In decades long past, teaching was once perceived as a relatively lucrative profession for women, whose professional options were constrained. This premium has evaporated.

The Teacher Salary Project documents the economic struggles of teachers and the impact that it has on children.

According to the California Department of Education, the average annual pre-tax salary for teachers in 2020-21 was $86,000, with a lot of variation. Beginning teachers made about $50,000, and the highest-paid teachers made a little more than $100,000. Teacher pay tends to be higher in areas where the cost of living is higher.

How has teacher pay changed?

Taking the long view, average teacher pay has risen over time, even adjusted for basic measures of inflation. But so have salaries for just about everything. Since the 1980s, teacher pay in America has lagged comparable employment, as described in Lesson 3.1.

Dr. Sylvia Allegretto, an economist at the University of California, Berkeley, has studied teacher compensation for many years. Her analysis is thorough, incorporating data from all over the US, including hours worked, salaries, bonuses, benefits, gender, age, experience, union membership and geography. According to Dr. Allegretto's 2022 analysis, after expanding for years, the teacher wage gap in America has reached an all-time high. In terms of weekly wages, teacher pay lagged comparable work by 32.9% nationally in 2021. Including the value of benefits, the annualized total compensation gap reached a record 14.2%. (Note: The gap is smaller in California (17.6%) than it is in most states.)

Why aren't more men teaching? Pay is certainly part of the story. In 2018, men teaching public school were making 31.5 percent less in wages than men in other comparable professions.

Pay for teachers in America is also low compared to pay for teachers in other countries. The Organization for Economic Cooperation and Development (OECD) collects international data about public education, which it summarizes annually in its monumental publication Education at a Glance. In the following chart, look to the right corner to find the United States.

Teacher pay varies by school district

Teacher salary and compensation are typically negotiated between school districts and teacher unions. The graphic below from the California Legislative Analyst shows the average package offered by districts in each county (Click image to view interactive version). Benefits in this view include health, dental, and vision coverage. Other benefits are not included, most notably pension (see Lesson 3.11) contributions or benefits. The map also makes no adjustment for variations in local costs.

The largest factor in local cost of living is the cost of rent, which greatly varies in different parts of the state. EdSource researched housing affordability for teachers in the state, finding that many of the areas where teachers are paid the most are where teachers can least afford to live.

School districts are very sensitive to the local cost of living, and in the big picture, teachers salaries tend to strongly reflect these costs. In 2018, the St. Louis Fed studied the correlation. A picture paints a thousand words:

The district salary schedule sets teacher pay

Teacher pay is usually determined by just two things: years worked in the district and number of postgraduate credits earned as recognized by that district.

Teachers in virtually all American public schools are paid according to a rigidly defined single salary schedule.” If you know the number of years a teacher has worked in a district (step) and the number of postgraduate credits the teacher has completed (column or lane), you can determine his or her pay, perhaps with the addition of a few small adjustments or incentives. Many districts offer a salary increase to teachers who obtain a master’s degree.

Those steps and columns can differ significantly from one district to another. For example, the graphs below show the basic salary schedules for Oakland Unified and San Mateo/Foster City in 2016. When teachers make a career move, pay is one important factor.

 

You might be asking - are these salary schedules good or bad? As usual, the answer is mixed.

The good news is that the widespread use of a single salary schedule has reduced or even erased discriminatory pay practices related to gender and ethnicity.

Seniority pay policies serve as "golden handcuffs"

Seniority is generally counted in terms of the number of years a teacher has worked in a specific district. Taking a job in a different district usually resets the teacher's seniority. Districts generally do not match an experienced teacher's salary when "stealing" a teacher from another district, reflecting the power of seniority-based pay systems in teacher contracts. At the high end of the experience curve, teachers are paid more than they would be in a strictly competitive marketplace, and there is a real penalty to changing employers. Especially when paired with the teacher pension system (Lesson 3.11), the salary schedule encourages teachers to stay put, which contributes to the stability of district faculty. Teachers have economic reasons to stay with a district, even if it is a tough place to work.

The bad news is that the single salary schedule system is rigidly indifferent to expertise, effectiveness, and market conditions. Teachers typically earn the same regardless of whether they teach effectively or ineffectively, whether they teach a subject that requires general knowledge or specialized knowledge, whether they teach many children or just a handful, and whether or not they bring out the best in their colleagues. Also, as discussed in Lesson 3.5, there is little or no evidence that students benefit when teachers earn advanced degrees. This may be money that could be better spent.

Alternative approaches to teacher pay

Some argue that major changes to the salary schedule should be "on the table" in district and union dialogue about strategies for change. This section summarizes some of the key ideas and what's known about them.

Elements of alternative teacher pay models

Reforms related to teacher pay propose to revise the salary schedule (or replace it altogether) in order to change the incentive structure. (See puzzle graphic for examples.)

Like many states, California has an acute shortage of teachers credentialed to teach students with special education needs. In order to attract candidates and fill positions without burning out unprepared teachers, the 2021 budget included an investment of $90 million into tuition fellowships for aspiring teachers who commit to teach subjects with shortages, including special education.

Should teachers be paid for performance?

All elements of an alternative compensation (altcomp) program are controversial, but none more so than performance pay, sometimes also known as merit pay. Pay-based incentives are common in business, especially in sales roles. Many businesspeople regard it as self-evident that teacher pay should vary with performance, too.

Yes, it's been tried.
Federal competitive grant programs have enabled significant experiments in performance pay systems for teachers. Under the Bush Administration, the Teacher Incentive Fund (TIF) committed several hundred million dollars to support programs that included a performance pay component. Under the Obama Administration, the much larger Race to the Top (RTT) and School Improvement Fund (SIF) programs also provided support for alternative compensation plans in schools with high concentrations of low-income students.

Many teachers, by contrast, regard it as self-evident that such incentives are patronizing because if teachers were in it for the money they would choose another line of work.

In 2009, Daniel Pink brought attention to the motivational risks of pay for performance in his bestseller Drive: the Surprising Truth About What Motivates Us. The heart of Pink’s thesis is that intrinsic motivation comes from a desire to achieve mastery, autonomy, and purpose. He presents evidence that conditional pay incentives can actually interfere with that drive.

Does teacher merit pay work?

If your school or district is considering changes to the way teachers are paid, prepare for a bumpy ride and do your homework.

The short answer is no. Experiments with pay-for-performance trials have produced disappointing results. Paychecks might be a small factor in whether a teacher stays at a school or in a role, but appear to have little or no influence in day-to-day work. After a decade of learning from the federal Teacher Incentive Fund program, it's clear that programs introducing merit pay produce conflict, mistrust, and distraction more often than they produce measurable positive results.

Most tests of incentive systems for teachers have been modest, offering only small bonuses and producing no clear benefit. Some argue that such experiments are merely too tentative. An evaluation of the most aggressive of all pay-for-performance plans, the IMPACT program in Washington, D.C., showed some results, mainly by spurring low-performing teachers to quit. Bruce Baker, a professor at Rutgers University who comments extensively on flaws in the interpretation of data about education results, questions whether getting teachers to quit actually counts as a positive result.

If your school or district is considering changes to the way teachers are paid, prepare for a bumpy ride, particularly if the program involves judgments about performance. You can add a lot to the conversation by doing the homework that others may avoid. It is a much more complex topic than most believe, and the evidence of impact from past attempts is weak compared to the certainty of distracting conflict associated with attempting it. It's helpful to view Laney's story, the video at the top of this lesson, and consider what she needs to be successful.

Updated October 2017
January 2018
May 2018
July 2018
September 2018
June 2019
December 2021
September 2022

Quiz

Teacher pay in virtually all American public schools is based on:

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Questions & Comments

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user avatar
Jeff Camp - Founder September 8, 2022 at 5:04 am
2022 state by state policy comparison from NCTQ: https://www.nctq.org/publications/State-of-the-States-2022:-Teacher-Compensation-Strategies
user avatar
Jeff Camp - Founder September 8, 2022 at 5:04 am
2022 state by state policy comparison from NCTQ: https://www.nctq.org/publications/State-of-the-States-2022:-Teacher-Compensation-Strategies
user avatar
Carol Kocivar June 14, 2022 at 1:09 pm
California Teacher Compensation
The Legislative Analyst provides an updated 2020-21 look at teacher pay in school districts throughout California. School districts and teacher unions typically negotiate compensation packages, with the graphic showing the average package offered by districts in a county. The benefits component includes health, dental, and vision coverage but excludes other benefits, most notably pension contributions.
https://lao.ca.gov/Education/Teachers/State
user avatar
Carol Kocivar June 5, 2022 at 4:47 pm

Teacher Salaries: A Key Factor in Recruitment and Retention: Learning Policy Institute
" Among teachers under 40 who left the profession during the pandemic, the top reason for their departure was that the pay was insufficient to merit the risk or stress of the job

https://learningpolicyinstitute.org/blog/teacher-salaries-key-factor-recruitment-and-retention?utm_source=LPI+Master+List&utm_campaign=f8e3bb88e9-LPIMC_TeacherWages_2022_04_14&utm_medium=email&utm_term=0_7e60dfa1d8-f8e3bb88e9-42325679
user avatar
Carol Kocivar June 5, 2022 at 3:39 pm
The Decline in Average Teacher Pay: National Education Association Report
Teacher Salaries Aren't Keeping Up with Inflation
Teachers are making $2,179 less, on average, than they did 10 years ago, adjusted for inflation
Find data for each state: https://www.nea.org/research-publications
user avatar
Carol Kocivar May 23, 2022 at 11:37 pm
Understanding teacher compensation: A state by state analysis
https://learningpolicyinstitute.org/product/understanding-teacher-compensation-state-by-state-analysis?utm_source=LPI+Master+List&utm_campaign=f8e3bb88e9-LPIMC_TeacherWages_2022_04_14&utm_medium=email&utm_term=0_7e60dfa1d8-f8e3bb88e9-42325679
user avatar
Carol Kocivar May 15, 2022 at 3:32 pm
The case for paying all teachers 6 figures.

“Covid-19 revealed how teachers — in addition to nurturing, protecting and mentoring our children — are essential to a smoothly running society. It’s time to pay them accordingly.”

https://www.nytimes.com/2021/05/28/opinion/teacher-pay-covid.html
user avatar
Jeff Camp - Founder March 22, 2022 at 3:52 pm
The combination of staff scarcity and temporary federal funding during the pandemic led to some new approaches to teacher pay according to this report by Edunomics Lab, which concludes that "An impressive number of districts have implemented stipends and other incentives that represent strategic, nimble, and financially responsible ways of compensating teachers."
None of the examples cited are in California.
user avatar
Selisa Loeza October 23, 2021 at 11:46 am
I feel so much for teachers. The amount of time teachers spend that in unpaid (planning, grading, etc) at home as well as supplies paid for from their classroom to enhance their students’ experiences is not calculated.

Although the rates in California may seem competitive, as the article states, it truly is skimpy.
user avatar
Carol Kocivar October 8, 2021 at 6:15 pm
Update on teacher salary comparison: US vs European countries.. And it's not good news.
The US has slipped from third to last to second to last.
https://ncee.org/webinar-event/education-at-a-glance-2021-implications-for-the-u-s/
user avatar
christian park November 19, 2020 at 7:13 pm
I have a question. Are the analyses of teacher salary versus comparably educated other workers based on annual salary? Is this adjusted to reflect the fewer weeks of work performed by teachers (who don't work during school breaks) versus other workers who typically work year-round with 2 or 3 weeks of paid vacation per year? Just trying to grasp the scope of the difference.
user avatar
Jeff Camp December 11, 2020 at 5:21 pm
Yes, Dr. Allegretto's analysis is based on weekly pay, so it adjusts for summer. Quoting her: "There are two measurement issues whenever there is discussion of teacher pay. One is that teachers have the “summers off,” so annual earnings are an inappropriate guide for wage comparisons. Two, teachers have good health and pension benefits that must be taken into account. We directly address these issues, the first by examining the weekly earnings of teachers compared with other college graduates and the second by adjusting our estimates of the weekly wage penalty for differences in benefits. "
user avatar
Jeff Camp January 24, 2020 at 10:28 am
The California Department of Education maintains a summary of salary levels for teachers and administrators at https://www.cde.ca.gov/fg/fr/sa/cefavgsalaries.asp . In general, bigger districts have higher administrator pay but spend less on administration as a percentage.
user avatar
Jeff Camp April 28, 2019 at 3:55 pm
California spends its education dollars on teacher salaries at a level unusual among the states, according to an analysis by the Fordham Foundation. "California is not exactly a low-spending state, yet it’s at the top of the list... it needs to pay more to have any chance at recruiting quality teachers."
user avatar
Carol Kocivar June 18, 2018 at 6:39 am
Low Teacher Salaries 101
This paper takes a state-by-state look at education spending levels, teacher salaries, and how salary levels correlate with turnover, staffing shortages, and other issues.

Here is the link.
https://www.erstrategies.org/tap/low_teacher_salaries_101
user avatar
Pamela Wright April 16, 2018 at 2:39 am
How does teacher salary vary by state?
user avatar
Jeff Camp - Founder April 17, 2018 at 1:08 pm
The short answer is that it varies with the cost of living. School districts pay what the market demands to hire college-educated employees. More in lesson 3.1
user avatar
Pamela Wright April 16, 2018 at 2:38 am
What has more impact on student performance, socio economics or teacher performamce?
user avatar
Jeff Camp - Founder April 17, 2018 at 1:46 pm
Lesson 2.2 explores the profound impact of poverty on student outcomes. There have been extraordinary examples of students overcoming the obstacles of poverty with the support of extraordinary teachers, but poverty is a corrosive to student learning AND to teachers' capacity to help students. It's not an accident that free lunch was one of the very first programs created to support schools. School work is hard, and requires concentration. Hunger, exhaustion and insecurity undermine concentration. The hazards of poverty extend to teachers, too -- for example, housing insecurity is a real issue for many teachers in California..
user avatar
Carol Kocivar April 8, 2018 at 10:40 am
One more bit of research on teacher pay. This time from the Economic Policy Institute. This one breaks down the gap by state. In no state are teachers paid more than other college graduates.
Check out their graphic
user avatar
Carol Kocivar September 19, 2017 at 11:22 am
How do teacher salaries compare to others with the same level of education? Not well. The 2017 Education at a Glance: OECD Indicators finds that "Teachers earn less than 60% of the salaries of similarly educated workers." Here is the summary of findings:

http://www.oecd-ilibrary.org/docserver/download/9617041ec072.pdf
user avatar
Jeff Camp March 16, 2017 at 5:08 pm
Should California exempt teachers from state taxes? Versions of this proposal have come up a few times, including SB807 in 2017. It would cost about $600 million annually. Via Cabinet Report
user avatar
Jeff Camp November 18, 2016 at 3:42 pm
The pay gap for teachers continues to widen, according to Sylvia Allegretto of the Economic Policy Institute: http://www.epi.org/publication/the-teacher-pay-gap-is-wider-than-ever-teachers-pay-continues-to-fall-further-behind-pay-of-comparable-workers/
user avatar
Carol Kocivar October 28, 2016 at 12:33 pm
A Quick Look at the Teacher Shortage
Check out our blog that discusses the widening teacher pay gap.
https://ed100.org/blog/teacher-shortage
user avatar
Jeff Camp September 20, 2016 at 9:16 am
Housing is a growing problem for teachers as housing prices have risen much faster than teacher salaries. According to an analysis by Redfin, a national real estate brokerage, a rapidly-shrinking percentage of listings are priced within reach of a teacher salary. In several California counties there are literally zero properties that a teacher could afford to buy. The report includes links to images of example properties that teachers could afford in each county. https://www.redfin.com/blog/2016/09/california-housing-affordability-for-teachers.html
user avatar
Carol Kocivar - Ed100 December 4, 2014 at 10:57 am
A new report "SMART MONEY: What teachers make, how long it takes and what it buys them" from the National Council on Teacher Quality takes a look at teacher salaries across the country. One finding:
"Generally speaking, the salary trajectory for teaching is characterized by relatively small, incremental raises doled out each year, serving in stark contrast to many jobs in the private sector, with its system of promotions, bonuses and relatively rapid raises."
http://www.nctq.org/dmsView/Smart_Money
user avatar
Jeff Camp - Founder November 7, 2011 at 3:07 pm
In late 2011 The Atlantic published a summary of four studies on the question "Are Teachers paid too much" http://www.theatlantic.com/business/archive/2011/11/are-teachers-paid-too-much-how-4-studies-answered-1-big-question/247872/
user avatar
Tamara Schiff March 31, 2011 at 3:35 pm
TAP: The System for Teacher and Student Advancement is a comprehensive school reform that is reaching nearly 20,000 teachers and 200,000 students across the country. TAP is comprised of four essential elements that are Aligned by Design--one of which is a performance pay component. Along with career opportunities for advancement, a fair and transparent evaluation system and job-embedded professional development, teachers are able to earn more for their demonstrated performance. Teachers who take on additional roles and responsibilities are compensated accordingly, while all teachers in TAP schools are eligible for annual bonuses based on multiple performance measures including classroom observation scores, individual and school wide student achievement growth. As noted in your other sections, TAP also recognizes that we need to attract, retain, develop and motivate the most talented individuals for the teaching profession. Data show that TAP addresses the intrinsic motivation of teachers to strive for excellence and effectiveness, and results in a high degree of faculty collegiality, thus proving that pay for performance is compatible with these values when it is an integral part of a well-designed support system. The comprehensive implementation of TAP has proven to improve teacher effectiveness and student achievement. The paper linked above, as well as additional research outcomes can be found at http://www.tapsystem.org/publications/tap_research_summary_0210.pdf.

The teaching profession needs to make dramatic changes in order to ensure that the most effective teachers are in our classrooms. TAP provides an opportunity to make the changes necessary to improve teacher quality and student learning for all children.
user avatar
Don Shalvey March 31, 2011 at 8:18 am
The profession of teaching is one of the most noble and dignifying callings anyone could consider. Compensation starts with the joy and satisfaction that comes from increasing the opportunities your students will have as they grow and is closely followed by the satisfation that comes from working with stunning colleagues. Does financial compensation matter? Absolutely. A teacher's ability to earn a family sustaining income, live a comfortable life and help support the futures of their own children is an aspiration every teacher should achieve.
If we consider the facts that some subject areas like math, sciences and special education have enormous teacher shortages and that there are schools where many students have been traditionally underserved then addressing these needs with additional compensation is both logical and appropriate. It is also appropriate to recognize the value that a teacher adds to his or her students in the areas of intellectual, personal and social development. Outcomes matter both in terms of value to the studenmts and value to one's colleagues and the positive culture and climate at the school.
The challenge is how to do it in a fair and consistent manner. It is a challenge worth accepting knowing that more often than not the concept of fairness emerges locally rather than nationally. We must find ways to honor and recognize highly effective teachers and find incentives to have them continue to bring their talents and inspiration to youth for many years. I believe those incentives are a combination of an increased base compensation, incentive compensation for preparation, assignment and performance with a stroing nod towards insuring that they interact always with stunning colleagues and an effective and inspiring principal.
©2003-2022 Jeff Camp
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