Compensation Matters: The Case of Teachers

Summary:

This brief offers an analysis of how cuts in pension benefits could affect the quality of teachers school districts are able to hire. (1/13)

Author(s):

Alicia H. Munnell and Rebecca Cannon Fraenkel of the Center for Retirement Research at Boston College

Publication date:

1/13

Filed under:

Research Studies

Key findings:

• Many public sector pension plans have recently cut pension benefits for new hires, thereby reducing compensation.
• One proxy for teacher quality is the average SAT score at a teacher’s undergraduate institution.
• School districts with higher wages and/or higher pensions are able to hire teachers from institutions with higher SAT scores.
• Cutting compensation for new teachers is not costless, as it will likely reduce applicant quality.

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