The descriptive analysis presented here shows that teacher staffing differences with regard to demographics, weekly wages, and unionization density vary considerably with the type of school ownership, public or private. The education vector includes five education-level dummy variables (master's degree or higher, bachelor's degree, some college, high school, and less than high school). Charter Schools Get More Pay, The Best Teachers Get A Lot More Pay The only state in the country that does not have a school district serving all of its students is Hawaii. The average salary for these top ten cities varies little between Atkinson, NE and Kensington, NY, and there is little difference between these top ten cities on a per capita basis. The preceding section on pooled data from 1996 through 2012 and by gender provided single point estimates for analyzing relative teacher pay over that period. 3% of charter school teachers plan to leave the profession when a more desirable opportunity comes along, while only 4.7% of TPS selected this option. SASS data shows that while only 10.7% of TPS teachers are novice (3 years or less experience), this rate jumps to 26.3% in charter schools. In ten cities, ZipRecruiter discovered that the average salary is higher than the national average. Weekly wages. (The gap was 29.5 percent in 1996.) These data allow for the identification of workers by occupation, education, industry, age, gender, race, union affiliation, and state of residence, along with weekly earnings. Of course, differences may be driven by an array of factors, so the next section utilizes regression-based analyses to control for the many factors that may influence teacher pay differentials. The lesson, in fact, has little to do with salaries at all. The top earners in the United States earn an average of $69,000 per year, according to Forbes. The relative pay gaps reported in table 4 for male teachers are all much larger than those for female teachers, and the differences, by sector, between union and nonunion teachers are not nearly as stark. On average over the entire sample period, the majority of teachers were employed in public schools (85 percent) while most nonteachers worked in the private sector (84 percent). How much does a Charter School Teacher make? In the U.S. case, however, the difference is larger.16. Union coverage rate, by Census division, teachers and nonteacher workers, 20102012. ABOUT THIS REPORT:Throughout 2018, investigative reporter Craig Harris examines the finances of some of Arizonas most prominent charter schools to reveal how they spend the tax dollars they receive, who profits off the operations, and what those deals mean for the future of education. 17 By using the natural logarithm of the wage, we can directly capture the percent change for each independent variable and a log transformation makes the positively skewed wage distribution more normal. 9 For a discussion of the union premium, see David Card, Thomas Lemieux, and W. Craig Riddel, Unions and wage inequality, Journal of Labor Research. Teachers in Huntsville, Alabama earn the highest salaries in the state, according to reports. Advocates call them "schools of choice." Rather than being bound by state education laws, these schools create their own contracts (known as "charters"). Monthly Labor Review, Updated February 16, 2023 Charter schools can be great opportunities for teachers to inspire students to gain a passion for lifelong learning. Public sector teachers generally receive better pay than private sector teachers, even when the former are not unionized. Regression-adjusted relative wages, public and private school male teachers, Figure 7. For an overview of the racial pay gap, see Roland G. Fryer, Racial inequality in the 21st century: the declining significance of discrimination," in David Card and Orley Ashenfelter, eds., Handbook of labor economics, vol. According to USA Today, the Bellevue School District, which includes the Christina School District, is ranked second on the list of best places to live in the U.S. Providence Public Schools has demonstrated strong progress in offering a top-quality education to all of its nearly 30,000 students. Thats not just a gap. Thus, on average, the inclusion of imputed data creates a systemic bias that increases average teacher pay and decreases the average pay of other college graduates.11. Any economistreally, anyone whos slept through an Econ 101 lecturecan tell you what comes next. Teachers don't have to hold teaching certificates, and only about 60% of charter school teachers in Arizona do. The Pros and Cons of Working at Charter School (Plus FAQs) The Ann Arbor Public School district serves more than 16,000 students. Imputed data are not available in 1994 and only for the last 4 months of 1995; thus, for consistency, we begin our analysis in 1996. Twenty years ago, charter schoolstaught 2 percent of studentsand received 3.2 percent of state education dollars. Despite this relatively equal growth, Hispanics remain far more underrepresented as teachers in the private sector than in the public sector. Montana is the worst state for teachers, with an average salary of $34,041. In their 2008 paper, Allegretto, Corcoran, and Mishel found that the pay gap between female public school teachers and comparably educated womenfor whom the labor market changed dramatically over the 19602000 periodfell by nearly 28 percentage points, from a relative wage advantage of 14.7 percent in 1960 to a pay disadvantage of 13.2 percent in 2000.7 Among all public school teachers, the relative wage disadvantage fell by almost 20 percentage points over the same period. A Charter School Teacher earns between $31,000 and $54,500 per year on average. However, the public sector share of all teachers decreased over time, falling from 85 percent in 1996 to 81 percent in 2012. The moral is that not all teaching jobs are alike. Private school teachers make way less than public school teachers. This consideration of opportunity cost also applies when teachers are deciding between the two sectors. Dr. Gary Miron of Western Michigan University points to the fact that charter schools spend more on administrative salaries and less on instructional costs. Imputed data are excluded. Private schools, some point out, suffer higher teacher turnover among early-career teachers: 24 percent of private-school teachers are in their first three years of teaching, compared with 13 percent of public-school teachers. The school still must pay the same utility, maintenance, transportation, and food services costs. At $4,541, there is a 75-percent chance of being in the top 10, while at $6,500, there is a 90-percent chance. Figure 2 shows the percentage of teachers who have at least a masters degree. Table 4. Every private, public, and charter school employs a salary model that reflects the economic realities of each institution. That's not just a gap. Standard errors are in parentheses. Public school teachers to nonteacher college graduates, Private school teachers to nonteacher college graduates, Another, slightly different, look at wage trends is given in figure 6, which depicts four ratios during the period from 1996 to 2012: public school teachers to all workers, private school teachers to all workers, public school teachers to nonteacher college graduates, and private school teachers to nonteacher college graduates. Figure 5 shows the mean weekly wages of various groups of workers. 22 As a test of the robustness of our results, we also estimated the same models separately for public and private elementary and middle school teachers, on the one hand, and public and private secondary school teachers, on the other. Conditional on the sector, unionized teachers pay was higher than that of teachers not covered by a union contract. For the gender pay gap, see Francine D. Blau and Lawrence M. Kahn, Gender differences in pay, Journal of Economic Perspectives. School districts can ask local voters for additional money, an option charter schools lack. Public schools receive federal, state, and local funding. These results for the United States are in line with those found in other member countries of the Organisation for Economic Co-operation and Development: teacher salaries in most of those countries are lower than the salaries of nonteacher college graduates. When public school supporters say charter schools get more tax money, they're referring to this state equalization funding. Differences between union and nonunion compensation, 20012011, Monthly Labor Review, April 2013. Both of these positions overlook the simplest explanation. Broadly speaking, schools are either publicly or privately funded. In response, in 2008 Allegretto, Corcoran, and Mishel published the results of a study in which the sample of teachers was restricted to those in the public sector. As they state, annual earnings of teachers cannot be directly compared with those of nonteachers, given that teachers are typically contracted to work only a 9-month year.20 In addition, differences arise over how much time teachers devote to professional development outside of their official 9-month contract. Adams notes that charter school teachers tend to earn 10 to 15 percent less than they might get elsewhere, regardless of their experience level. p. 9; and Barry T. Hirsh and Edward J. Schumacher, Match bias in wage gap estimates due to earnings imputation, Journal of Labor Economics, vol. The most obvious example of this is when you ask your board for a raise. Large disparities exist in particular in the low-union-density West South Central division (Arkansas, Louisiana, Oklahoma, and Texas), in which teacher unionization rates are 42 percent in the public sector and 28 percent in the private sector while rates for the nonteaching workforce are a much smaller 18 percent in the public sector and 4 percent in the private sector. Finally, considerable debate arises in regard to analyses of hourly pay of teachers and other professionals because the number of hours teachers work at home is uncertain but mostly likely is more than that of other professionals. The Governor's Office saysdozens of public school districts are giving teachers pay raises of 10 percent or more when school begins in late summer. West South Central: Arkansas, Louisiana, Oklahoma, Texas. TPS teachers have also pursued more advanced degrees, with 56.8% holding a masters degree or higher. The two middle groupsnonunionized public sector female teachers and unionized private sector female teachershad similar outcomes over the 19962010 period. Figure 4. Nonteacher workers with less than a bachelor's degree. Its a chasm. Why Are Private-School Teachers Paid Less Than Public-School Teachers During the 19962012 period, Hispanic shares of the private sector nonteacher workforce increased from 12 percent to 17 percent and Hispanic shares of the public sector nonteacher workforce grew from 8 percent to 11 percent. Because Blacks represent a relatively higher, albeit slightly decreasing, share of workers in the public sector. Independently operated charter schools offer higher teacher salaries, more autonomy, and as a result, higher job satisfaction. These numbers illustrate the difficulties that charter schools face when it comes to teacher recruitment. There are a number of reasons why charter school teachers might not make significantly more money than traditional public school teachers. Charter School Teacher: Job Outlook, Education, Salary Yes, you can discharge your student loan debt by filing for personal bankruptcy. For example, in 2013, Michigan charter school teachers earned an average of $42,864, but traditional public school teachers earned $63,094.