Compensation Matters: The Case of Teachers


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

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