Do teachers’ wages vary with the racial composition of their students?

The present paper examines the relationship between public school teacher salaries and the racial concentration and segregation of students in the district. A particularly rich set of control variables is included to better measure the effect of racial characteristics. Additional analyses included Metropolitan Statistical Area fixed effects and longitudinal teacher salary data. The results are generally consistent with a positive compensating wage differential for working in districts with a higher percentage of Black and Latino students. The longitudinal results also suggest that more segregated districts may pay lower salaries.

Source: “Are public school teacher salaries paid compensating wage differentials for student racial and ethnic characteristics?” from Education Economics

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