The Effects of Policies Concerning Teachers’ Wages on Students’ Performance

Júlia Varga

No 1701, Budapest Working Papers on the Labour Market from Institute of Economics, Centre for Economic and Regional Studies

Abstract: Using country panel data of student achievement from PISA, 2003-2012 combined with national-level teacher salary data from the OECD; this study investigates if relatively short term -5-years - changes in the level and structure of statutory teacher salaries affect student performance in the European countries. Our results show that there are marked differences between subjects and by the experience of teachers. Higher statutory teacher salaries and larger growth of teacher salaries at the first part of teachers’ career increase students’ maths and science performance, while the effect was less pronounced on reading performance and at the second part of teacher career. Nevertheless, the reason for the lack of the effect of teacher salaries at the second part of teachers’ career may be the result of the lack of data on teachers’ actual salaries.

Keywords: teacher salaries; student performance; international; PISA; random effect; two-step method (search for similar items in EconPapers)
JEL-codes: C23 I20 J31 J45 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2017-01
New Economics Papers: this item is included in nep-edu, nep-eff, nep-hrm and nep-ure
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