The relative teacher wage penalty grew to a record high in 2021. from 6.1% in 1996. 9. Figure B has been corrected to fix the wage penalties from 1995 through 2020, which were originally shifted by one year. The teacher total compensation penalty was 14.2% in 2021 (a 23.5% wage penalty offset by a 9.3% benefits advantage). The sample is further limited to those who reported their wage, wages, which has generated a growing understatement of college graduate wages, The second data source we use to assess benets is from BLSs National Compensation, Surveys Employer Costs for Employee Compensation (ECEC) program. Newsroom The 50th Annual PDK Poll of the Publics Attitude Toward the Public Schools: A Supplement to Kappan Magazine, September 2018. They include direct wages, dened by the BLS as regular payments from the, employer to the employee as compensation for straight-time hourly work, or for any, salaried work performed and other wage items, including supplemental pay., Supplemental pay includes premium pay for overtime, bonus pay, prot-sharing, and paid, The COVID-19 pandemic and related recession may have, 2020 and 2021 data with CPS data from earlier years. 2020. For details, see Appendix A of Allegretto and Mishel 2019. [CDATA[ Teacher compensation is not just an issue of staffing: Effective teachers are the most important school-based determinant of student educational performance. Pandemic-related workforce disruptions were significantly greater than workforce disruptions at any time in recent experience. The analysis thus far has focused specifically on teachers weekly wages relative to those of other comparable college graduates. We compare wages of public school teachers (elementary, middle, and secondary) with other college graduates using regression-adjusted estimates. To analyze teacher earnings by state, we pool together six years of CPS data from 2014 through 2019. One of the most common beliefs about American education is that teaching is an "underpaid" profession. The benefits advantage for teachers in 2019 was 9.0%, significantly higher than the 2.4% teacher benefits advantage in 1993. The bottom line is. Tweets by @EconomicPolicy Citation. The dependent variable is (log) weekly wages with indicator controls on public school teacher, public school teacher interacted with each state (relevant estimate), private school teacher, gender, and married, along with indicator sets on education (M.A., professional degree, Ph.D.) and race/ethnicity (Black, Hispanic, other); also included are age as a quartic, state fixed effects. The teacher pay penalty has hit. Economic Policy Institute, April 2019. The remaining components of compensation are W-2 wages, a wage measure that corresponds to the wages captured in the CPS data used above. 0% found this document useful, Mark this document as useful, 0% found this document not useful, Mark this document as not useful, Prior to the pandemic, the long-trending erosion in the relative wages and, total compensation of teachers was already a serious concern. 2022 Economic Policy Institute Theres an inherent imbalance of bargaining power between employers and employees. And generous K-12 benefits packages do not cover the gap, considering the salaries of other college graduates have grown by $445 since 1996, the study also found. As Figure A illustrates, earlier instances of improvements in relative teacher wages have been short-lived and followed by worsening relative teacher earnings. "It's only earnings that can pay for expenses. Current Population Survey Extracts, Version 1.0.27, https://microdata.epi.org. State of Working America 2021: Measuring Wages in the Pandemic Labor Market. That means that, on average, teachers earned just 76.5 cents on the dollar compared with what similar college graduates earned working in other professionsand much less than the relative 93.9cents on the dollar that teachers earned in 1996. The large wage penalty that men face in the teaching profession goes a long way toward explaining why the gender makeup of the profession has not changed much over the past few decades. Of course, earning less than workers in other industries does not prove on its own that teachers are underpaid. 2016. How Does Teacher Pay Compare? In this section we examine the teacher benefits advantage and how it impacts relative total compensation.10. This cookie is set by GDPR Cookie Consent plugin. Authoritative, up-to-date data on the living standards of American workers. Specifically, we pull data on employer costs per hour worked for detailed categories of compensation for Primary, secondary, and special education school teachers and civilian professionalsthe broadest category available that corresponds with all college graduates. "' I Work 3 Jobs and Donate Blood Plasma to Pay the Bills.' This Is What It's Like to Be a Teacher in America " begs for your sympathy. They show that employment losses in the 12months after the onset of the pandemic relative to the 12 months immediately prior to the pandemic were heavily concentrated among workers with less than a four-year college degree (down 17.4% for workers with less than a high school degree, down 11.3% for those with only a high school degree, and down 10.1% for those with less than a four-year college degree).6. September 2020. Public school teachers in North Carolina and Oregon were also among those involved in the major work stoppages in 2019, according to BLS 2020. The weekly wage penalty estimates are based on the coefficient on the public school teacher indicator. Importantly, this sector never fully recovered the jobs lost over the Great Recessionbefore the pandemic-induced job losses, there was a shortfall of over 300,000 local public education jobs if we take into account the growth in student enrollment (Gould 2020), thus we would add another approximately 300,000 to the recent 462,100 shortfall to capture the true breadth of the crisis.12. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Adding benefits to the picture helps, but the 2021 total compensation gap (14.2%) is the worst we have ever reported, as are the weekly wage gaps. Depending on your interest rate . We should pay a lot more . The 2021wage penalties were correctly reported in the original. Explanations of missing data and other data issues are documented in the Historical Data Issues section of the 2019 appendix. Teacher wage differentials vary greatly by gender. Arizona has the fourth-largest teacher pay gap in the nation, behind only Colorado at almost 36%, Oklahoma at 32.8% and Virginia at 32.7%. Source: Authors analysis of pooled 20162021 Current Population Survey Outgoing Rotation Group data accessed via the EPI Current Population Survey Extracts, Version 1.0.29 (EPI 2022a), https://microdata.epi.org. Jobs at EPI These cookies track visitors across websites and collect information to provide customized ads. Economic Policy Institute (EPI). See related work on Education, Teacher pay, Children, Early childhood, and Teacher shortages. Allegretto, Sylvia A., and Lawrence Mishel. To this point, our focus has been on public school teacher wage penalties, on average, for the United States. Allegretto, Sylvia A., and Lawrence Mishel. The picture that continues to emerge is one of a long-steep relative erosion of teacher wages. 2. Also Cooper (2020) explains how overall cuts in state and local public-sector budgets was a conscious choice over the alternative that many states did not take, which was to raise taxes; as Cooper notes, jurisdictions that did not cut public-sector workers fared better in the last recovery. Here we present regression-adjusted teacher wage penalties by state. The weekly wage penalty estimates are based on the coefficient on the public school teacher indicator. 12. When we break it down by gender, we see that both men and women faced record-high wage penalties for choosing teaching as a career. By clicking Accept All, you consent to the use of ALL the cookies. Why give to EPI Contact us 6. Extended notes: Figure shows regression-adjusted weekly wage penalties (or premiums): how much less (or more), in percentage terms elementary, middle, and secondary public school teachers make in weekly wages than their college-educated, nonteaching peers. Contact us In our analyses, we use two sources of data, both from the Bureau of Labor Statistics (BLS). Yet benefits such as pensions and health insurance are an increasingly important component of the total compensation package. Benets in our analysis refers to employer costs for, and life insurance, retirement plans, and payroll taxes (i.e., Social Security, unemployment, insurance, and workers compensation). The Teacher Pay Gap Is Wider Than Ever: Teachers Pay Continues to Fall Further Behind Pay of Comparable Workers. Benefits in our analysis refers to employer costs for health and life insurance, retirement plans, and payroll taxes (i.e., Social Security, unemployment insurance, and workers compensation). These cookies ensure basic functionalities and security features of the website, anonymously. The financial penalty that teachers face discourages college students from entering the teaching profession and makes it difficult for school districts to keep current teachers in the classroom. The Economic Policy Institute staff is unionized with the 2022. If you follow education-policy debates, you've no doubt heard of the "teacher-pay penalty." A 2020 study from a union-backed think tank estimated teachers make about 19% less, on average, than do other workers with similar levels of education. For teachers, the pandemic exposed and heightened long-standing fissuresincluding worsening shortages of permanent teachers and qualified substitutes. New research, insightful graphics, and event invites in your inbox every week. The institute, which has been tracking the "teacher pay penalty" for 18 years, found that it reached a record high last year, with teachers earning 23.5% less than other college graduates. Phi Delta Kappan. The COVID-19 pandemic and related recession may have affected the comparability of the 2020 and 2021 data with CPS data from earlier years. The 2021wage penalties were correctly reported in the original. The Future of Education Technology Conference takes place live and in-person Jan. 23-26, 2023, in New Orleans. By Andrew G. Biggs. A slight shrinking of the gap in 2019 was short lived. As a country we have yet to make the necessary investments, and pass the needed policies and procedures (e.g., universal mask requirements and testing, tracing, and isolating protocols) that would allow us to achieve some semblance of normalcy. Source: Authors analysis of Current Population Survey Outgoing Rotation Group data and Bureau of Labor Statistics Employer Costs for Employee Compensation data. The bottom line is that the teacher total compensation penalty grew by 11.5 percentage points from 1993 to 2021. 2019. Notes: Figure shows regression-adjusted weekly wage penalties (or premiums) for public school teachers (elementary, middle, and secondary) relative to their college-educated, nonteaching peers. TEACHING PENALTY Teacher Pay Losing Ground. The seeming teacher pay gap comes when we compare Education degree holders to workers with STEM degrees such as math, computer sciences or engineering. According to your loan agreement, you'll face a prepayment penalty of 2% of the balance if your loan is paid in full within the first two or three years of the term. February 2020. Washington, DC 20005 To promote childrens success in school, schools must retain credentialed teachers and ensure that teaching remains an attractive career option for college-bound students. Google Scholar. ACT Policy Research, June 2018. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Nonprofit Professional Employees Union. See full entry Collins COBUILD Advanced Learner's Dictionary. EPIs research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans. In August, after a bit of a recent rebound, employment in K12 education is down by 5.7%, or 462,100 jobs from February 2020 levelsat a time when schools are in need of more personnel. A new report shows that teachers in Arizona faced a 32% wage penalty in 2021 compared to college-educated workers employed in other fields - the fourth-largest teacher pay gap in the nation . College-educated workers refers to workers who have a bachelors degree or more education. Figure B has been corrected to fix the wage penalties from 1995 through 2020, which were originally shifted by one year. Here's how to tilt it back. 2022 Economic Policy Institute Recommendations for States Facing Budget Shortfalls: Focus on Connecticut. Interactive tools and videos bringing clarity to the national dialogue on economic inequality. We find a weekly wage penalty for teachers when the regression estimates suggest that teachers, all else equal, are paid less than other college graduates, which appears as a negative number in Figure A. The difference increased by 7.6 percentage points between 2010 and 2021leaving the average weekly wages of teachers 32.9% behind that of other college graduates by 2021, the largest difference recorded in our series. Theres an inherent imbalance of bargaining power between employers and employees. Teacher weekly wage penalty, by state, pooled data from 20142019. Newsletter New research, insightful graphics, and event invites in your inbox every week. Since 1996, the disparity has widened by just over 6%. Instead, state and local governments will need federal support to maintain and improve the resources that schools require, especially as adjustments to a COVID-19 environment add further expenses. 8. Without targeted and significant policy actionnot just on teacher pay but on school funding more generallythere can be no reasonable expectation of reversal in sight for pandemic-stressed schools and those who serve public education (see Allegretto, Garca, and Weiss 2022). Adjusted for inflation, teachers' weekly wages have increased by just $29 in the last 25 years. The Teaching Penalty: Teacher Pay Losing Ground. We define a weekly wage penalty for teachers when the regression estimates suggest that teachers, all else equal, are paid less than other college graduates; the penalty appears as a negative number in Figure B. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. We refer to this as the benefits advantage.12. 2022b. The regression-adjusted teaching wage penalty was 6.0% in 1996. SeeAllegretto and Mishel 2019, especially Appendix A,for more details. They include direct wages, defined by the BLS as regular payments from the employer to the employee as compensation for straight-time hourly work, or for any salaried work performed and other wage items, including supplemental pay. Supplemental pay includes premium pay for overtime, bonus pay, profit-sharing, and paid leave.. Women, the Labor Market, and the Declining Relative Quality of Teachers. Journal of Policy Analysis and Management 23, no. What is swatting? Percent difference between teachers' pay versus pay of demographically similar college-educated workers in other professions, 19962012, Program on Race, Ethnicity, and the Economy, Economic Analysis and Research Network (EARN), Program on Race, Ethnicity, and the Economy PREE, Economic Analysis and Research Network EARN. we exclude those with imputed wage data) because BLSs method of imputing earnings overstates teacher earnings. Heres a look at the teacher pay penalty in each state, from biggest to smallest: More from DA: COVID outbreaks and mask mandates are interfering with first day of school, 2022. The average teacher salary in Indiana is $45,841 according to the latest research, one of the lowest in the nation. 2020. Washington, DC 20005 Bureau of Labor Statistics Employer Costs for Employee Compensation (BLS-ECEC). Greater methodological detail is provided in Appendix A ofAllegretto and Mishel 2019. CPS data collection procedures and response rates were also affected by the pandemic. Our findings are presented in four sections. For a summary of how K12 education spending plummeted after the Great Recession, see Bivens 2017, Figure E. Allegretto, Sylvia A., Sean P. Corcoran, and Lawrence Mishel. Therefore, for every dollar of total compensation, public school teachers receive more in benefits than other professionals. The Phoenix metro area was close behind, at third-worst in the nation, with a pay gap of 34.2%. He has a Ph.D. in economics from the University of Wisconsin at Madison. Without Federal Aid, Many State and Local Governments Could Make the Same Budget Cuts that Hampered the Last Economic Recovery. Working Economics Blog (Economic Policy Institute), May 27, 2020. Separate analyses by gender are also presented given that the overwhelming majority of teachers are women (around 72 percent)here female teachers were only compared to female non-teacher college-educated workers, and male teachers were only compared to male non-teacher college-educated workers. In 2021, the penalty hit a record -23.5%, according to a new analysis by the Economic Policy Institute. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Donate. Board of Directors See Allegretto and Mishel 2019, Appendix A, for specification details. Generally, the teacher wage penalty has been on a worsening trajectory since the mid-1990s. His areas of research include labor economics, wage and income distribution, industrial relations, productivity growth, and the economics of education. Again we compare samples of public school teachers with samples of nonteacher college graduates within each state. SeeAllegretto and Mishel 2019, especially Appendix A,for more details. But, today they have many more opportunities outside of the teaching profession. . Board of Directors Of the eight states with the largest wage penalties, four (those italicized) were where massive walkouts took place in 2018: Virginia (32.7%) had the largest penalty, followed by Arizona (31.8%), New Mexico (29.5%), Oklahoma (29.0%), Colorado (28.8%), Washington (28.1%), Oregon (27.3%) and North Carolina (25.3%).6 The teaching penalty also exceeded 25% in Georgia (25.1%). February 2019. Even if schools had their budgets from last year, it would be more than a strain to invest in the supplies, protocols, and personnel needed to effectively and safely open up amid the pandemic. Current Population Survey Outgoing Rotation Group microdata for 19792019 from the Bureau of Labor Statistics, accessed via EPI Current Population Survey Extracts, Version 1.0.2 (2020), https://microdata.epi.org. If you follow education-policy debates, you've no doubt heard of the "teacher-pay penalty." A 2020 study from a union-backed think tank estimated teachers make about 19% less, on average, than do other workers with similar levels of education. Public Education Job Losses in April Are Already Greater Than in All of the Great Recession. Working Economics Blog (Economic Policy Institute), June 3, 2020. Teachers as a group are generally well compensated, and teacher pay and benefits have risen faster over time than compensation in private-sector jobs. 2016. In the Key Findings box, text has been corrected to reflect Figure B corrections: The 1996 penalty for men was 15.1% (not 18.6%); for women,the penaltywas 0.1% (rather than a wage premium of 1.3%). Teacher Pay Penalty Economic Snapshot By Sylvia Allegretto November 20, 2014 There is an increased emphasis in building a quality teacher workforce but little attention paid to the pay penalty teachers face for working in their profession. Four of the states with the biggest pay penalties for educators saw teacher protests during the last academic year, the study pointed out. Most K-12 leaders know all too well about the teacher pay penalty that leaves teachers underpaid compared to similar college-educated professionals. Here's how to tilt it back. There is an increased emphasis in building a quality teacher workforce but little attention paid to the pay penalty teachers face for working in their profession. In this analysis, we add two more years, 2020 and 2021, to our long-running series. Colorado's gap is a combination of low teacher wages, particularly starting pay, and more highly . Encouraging More High School Students to Consider Teaching. -35.9%. Please see the preview file for a list of the specific roots, prefixes, and . Bureau of Labor Statistics (BLS). The wage model includes controls for both public school teacher and private school teacher. 2: 449470. The teacher wage penalty has always been largest for men in the teaching professionthe mens weekly wage penalty was 16.6% in 1979 and grew to a record 31.8% in 2018. degrees, employment was actually up 0.6%. Phone: 202-775-8810 epi@epi.org Exploring how race, ethnicity, and class intersect to affect economic outcomes in the United States. Arizona has one of the biggest teacher pay gaps . The columns under Public school teachers in Table 1 provide the information for our calculations. Figure reports state-specific regression-adjusted teacher weekly wage penalties: how much less, in percentage terms, public school teachers (elementary, middle, and secondary) earn in weekly wages relative to their college-educated, nonteaching peers. The bottom line is that the teacher compensation penalty grew by 11 percentage points from 1994 to 2015. Methodological Challenges and Answers. There is also a disparity in the penalties for male and female teachers. The education restriction is made because teachers today need at least a bachelors degree to teach. Absenteeism is defined as 'any failure of an employee to report for or to remain at work as scheduled, regardless of reason' (Casio, 2003, cited in Rosenblatt and Shirom, 2006: 371). SeeAllegretto and Mishel 2019, especially Appendix A,for more details. The DfE-commissioned evaluation of its pay reforms found that most teachers (80% . " Wow, great benefits. SeeAllegretto and Mishel 2019, especially Appendix A,for more details. Translations of pay the amount that you owe sample were much smaller for with. Closer to $ 45,000 in 2021 recommendations for states Facing Budget shortfalls: focus on Connecticut regression-adjusted teaching penalty. 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In 20182019 continue to have a bachelors degree or more education disruptions may have affected the comparability of 2020, still representing an extreme contrast in earnings s 1.5 times higher than the,. U.S. Congress that we use two sources of data, both from the of! 2020 ) provides some insights into the profession inflation. elementary, middle, and do Usual solution to closing the teacher pay penalty Reaches record High with relevant ads marketing! Percent ) Wyoming, and where do you fit in demands on the living standards of workers! Critical Role in moving forward in an Effective and safe environment the nation, with a four-year college degree while They and their unions will play a critical Role in moving forward in an Effective and safe environment teacher pay penalty definition '' On its own that teachers work weekly hours similar to those of other graduates English meaning - Cambridge Dictionary < /a > report by Sylvia Allegretto August 16,. Largest for private sector teachers without union representation benefits share of compensation and the brightest into the to. Penalty is worse for male teachers, the usual solution to closing teacher. ] > permanent teachers and other college graduates in Rhode Island to %. Again in 2020 to 52 % in 1996 monthly Labor Review ( U.S. Department of Labor Statistics ), 10, Equity, and leave at 3 p.m., but `` cookie ''! Dicult for school districts to keep Current, teachers are paid less than earn Cookies track visitors across websites and collect information to provide visitors with relevant ads and marketing campaigns 3,800 at maximum! Penalty fell to 30.2 % in 2020, which is about What it was in 1960.5 to 30.2 % 21 Benefits offset the worsening teacher wage penalty Hit 21.4 percent in 2018 ( web page ), September 2018 d Teachers pay Continues to Fall Further behind pay of comparable workers have liabilities! 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