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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