Would higher salaries keep teachers in high-poverty schools? Evidence from a policy intervention in North Carolina

Abstract

For a three-year time period beginning in 2001, North Carolina awarded an annual bonus of $1,800 to certified math, science and special education teachers working in high poverty or academically failing public secondary schools. Using longitudinal data on teachers, we estimate hazard models that identify the impact of this differential pay by comparing turnover patterns before and after the program's implementation, across eligible and ineligible categories of teachers, and across eligible and barely-ineligible schools. Results suggest that this bonus payment was sufficient to reduce mean turnover rates of the targeted teachers by 12%. Experienced teachers exhibited the strongest response to the program. Finally, the effect of the program may have been at least partly undermined by the state's failure to fully educate teachers regarding the eligibility criteria. Our estimates most likely underpredict the potential outcome of a program of permanent salary differentials operating under complete information.

Reading economics, thinking education: The relevance—and irrelevance—of economic theory for curriculum research

“…For example, note that there are a number of teacher incentives that will maintain quality teachers and improve student performance. Similarly, Clotfelter et al (2008) show that differential pay targeted towards high quality teachers in poor areas improves retention. Yet, as shown by Sander (2008: 309) internationally, 'higher salaries for teachers and higher per pupil expenditures are not strongly related to academic achievement'.…”

Mobility-Related Teacher Turnover and the Unequal Distribution of Experienced Teachers in Turkey

“…The existing research investigating reasons for mobilityrelated turnover conclude that teachers move from one school, district, or region to another based on their preferences about salary, class size, workload, student characteristics, facilities, and socioeconomic context of the school (Boyd, Lankford, Loeb, & Wyckoff, 2005a;Clotfelter, Glennie, Ladd, & Vigdor, 2008;Hancock & Scherff, 2010;Hanushek, Kain, & Rivkin, 2004;Loeb, Darling-Hammond, & Luczak, 2005;Swars, Meyers, Mays, & Lack, 2009). …”

“…Salary differences, particularly compensation and bonuses, play an import role in teachers' decisions to move or stay (Clotfelter et al, 2008;Feng, 2009). Nonetheless, a growing body of research from different contexts suggests that teachers' decisions to move are much more strongly affected by student characteristics, particularly race and achievement, than by salary (Hanushek et al, 2004).…”

Towards an optimal teacher salary schedule: Designing base salary to attract and retain effective teachers

“…Several studies show that higher salaries reduce teacher attrition (Clotfelter, Glennie, Ladd, & Vigdor, 2008;Clotfelter et al, 2011;Hanushek, Kain, & Rivkin, 2004;Hendricks, 2014;Imazeki, 2005;Podgursky, Monroe, & Watson, 2004). This suggests that higher salaries are likely to retain more of the most able teachers, and those teachers are likely to improve over time.…”