A Spatial Study of Teachers' Salaries in Pennsylvania School Districts *

Robert T. Greenbaum

Journal of Labor Research, 2002, vol. 23, issue 1, 69-86

Abstract: I explore the relationship among teacher salaries across Pennsylvania school districts. Using techniques developed in spatial econometrics, I find that the error terms in a salary regression are spatially correlated, suggesting evidence of omitted labor market factors. I also find evidence that salaries in nearby, financially similar districts directly influence teacher salaries in a particular district, which is evidence of pattern bargaining or more informal social comparisons across districts. Econometric specifications that ignore these factors overstate the influence of own-district variables, such as economic indicators, on salary.

Date: 2002
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