Sawing off the top of a step ladder

Policymakers may have accidentally demonstrated that they have the skills needed to curb the pay of the top earners in a profession. Unfortunately, these problem solving skills were not applied to CEOs, who regularly get paid a thousand times what their middle-paid worker makes. Instead, some state lawmakers have tackled the non-existent problem of teachers making too much money.

In 2016, public school teachers in the states with recent strikes or large scale protests (West Virginia, Oklahoma, Arizona, Kentucky, North Carolina, and Colorado) are paid about three dollars per hour less than other teachers nationwide. This is not new. After adjusting for prices, the gap was about the same in 2006. What has changed is teacher pay near the “top”. In 2006 a public school teacher making $40.93 per hour (in 2016 dollars) makes more than 90 percent of public school teachers nationwide, while it takes an hourly wage of $37.95 to make more than 90 percent of teachers in states with strikes and protests. The nationwide 90th percentile wage ticked up to $43.27 by 2016, but fell to $34.98 for the states that have subsequently organized strikes and protests.

teacherpay

The top half of the public school teacher wage distribution is already low compared to other occupations. But after state efforts to curb teacher pay, 90 percent of the public school teachers in states with strikes and protests make less than $35 an hour, and more than a quarter of the group is paid less than $16 an hour. These hourly wage figures are based on annual earnings in the March CPS, so they already account for differences in weeks worked per year and hours worked per week, and are therefore more comparable to the hourly wages of other occupations. Using these wage values, teachers, relative to other occupations, have the additional burden of being paid, on average, for fewer hours per year, making it harder for them to make ends meet.

Policymakers should reverse the misguided efforts to cut teacher pay. If anything, teachers should be better rewarded for their contribution to society. It shouldn’t take strikes and protests to make this point.

Technical note: The box plot above shows the average (green diamond), median (white line), 90th, 75, 25th, and 10th percentile hourly wage. Public school teachers are identified as persons in occupations 2200 to 2340 who are employed by the government. The hourly wage variable is generated as the ERN-VAL / (WKSWORK * HRSWK). 

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