We recently published a research brief looking at gaps in pay between teachers and comparable non-teacher professionals. These gaps are sometimes called “teaching penalties.” The brief draws on data from the School Finance Indicators Database (SFID), a collection of school finance and resource allocation measures published by the Shanker Institute and the Rutgers Graduate School of Education.
The first part of the brief presents our estimates of teaching penalties, by state, for young (age 25) and veteran (age 55) teachers. We find that the gaps between teachers and similar non-teacher professionals range between 5-10 percent in states like Pennsylvania and Montana to 35-40 percent in Arizona, Oklahoma and Colorado (the latter three are all states in which there were recent major teacher strikes). To be clear, these estimates do not include benefits, although our rough calculations (discussed in the brief) suggest that the inclusion of benefits would not come close to closing these gaps in most states.
Our primary focus, however, is on the relationship between these teaching penalties and states’ school finance systems.
Specifically, we find a significant relationship between the size of the penalties and adjusted state K-12 spending. In other words, states that spend more exhibit smaller gaps. We find a similar relationship between the penalties and states’ fiscal effort, which measures how much of their total “economic capacity” they spend on K-12 education – i.e., states that put forth more “effort” tend to have smaller gaps.