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Adjusting teacher salaries for the cost of living: the effect on salary comparisons and policy conclusions
ARTICLE

Economics of Education Review Volume 24, Number 3, ISSN 0272-7757 Publisher: Elsevier Ltd

Abstract

Teaching salaries are commonly adjusted for the cost of living, but this incorrectly accounts for welfare differences across states. Adjusting for area amenities and opportunities, however, produces more accurate salary comparisons. Amenities and opportunities can be measured by the wage premium other workers in a state face. The two methods produce significant differences in state rankings. Additionally, salaries adjusted for alternative wages are strongly associated with student outcomes, while those adjusted for the cost of living are not. The method of adjustment also alters results from regressions that examine the effects of other policies, like unionization, on teacher salaries.

Citation

Stoddard, C. (2005). Adjusting teacher salaries for the cost of living: the effect on salary comparisons and policy conclusions. Economics of Education Review, 24(3), 323-339. Elsevier Ltd. Retrieved February 17, 2020 from .

This record was imported from Economics of Education Review on March 1, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct: http://dx.doi.org/10.1016/j.econedurev.2004.06.004

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