Value for Money? Teacher Compensation and Student Outcomes in Canada's Six Largest Provinces

David Johnson ()

C.D. Howe Institute Commentary, 2015, issue 434

Abstract: Teacher salaries must be attractive enough to draw proficient persons into the profession that deliver positive results in classrooms. But how much do teachers in publicly funded school systems earn relative to the overall population? And do provinces that pay their teachers more achieve better student results? This paper compares teacher salaries in Canada’s six largest provinces to wages of other similar workers. Manitoba and Ontario pay the most relative to other similar workers in the province, while British Columbia teacher wages are usually the lowest. Relative salaries in Alberta and Saskatchewan are closer to those in British Columbia than those in Ontario or Manitoba. Pension benefits are also generally most generous in Manitoba and Ontario and least generous in British Columbia. The study finds no clear relationship between province-wide student assessment results and relative teacher compensation. So despite considerably lower levels of overall relative compensation, British Columbia and the other three provinces with similar relative compensation levels attract teachers who produce comparable outcomes. Provinces that desire to limit growth in overall public expenditures, and that are home to relatively wellcompensated teachers, appear to have negotiating room to limit the growth of teacher compensation relative to other occupations. It is unrealistic to expect that such a compensation change could occur quickly. Relative salaries could be reduced gradually by having a series of wage settlements where increases are less than the rate of inflation. To emulate the pension rules in British Columbia, pension generosity in other provinces could also be adjusted gradually. The evidence suggests that even at British Columbia’s levels of relative salaries and pensions, proficient persons are attracted to the profession.

Keywords: Education, Skills and Labour Market; Teachers Salaries (search for similar items in EconPapers)
JEL-codes: I20 I28 (search for similar items in EconPapers)
Date: 2015
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