The magnitude of variation in the quality of teachers, even within each school, is startling. Teachers who work in a given school, and therefore teach students with similar demographic characteristics, can be responsible for increases in math and reading levels that range from a low of one-half year to a high of one and a half years of learning…

Search theory suggests that early career job changes on balance lead to better matches that benefit both workers and firms, but this may not hold true in teacher labor markets characterized by salary rigidities, barriers to entry, and substantial differences in working conditions that are difficult for institutions to alter. Education policy…

Most analyses of teacher quality end without any assessment of the economic value of altered teacher quality. This paper combines information about teacher effectiveness with the economic impact of higher achievement. It begins with an overview of what is known about the relationship between teacher quality and student achievement, which provides…

Two decades of research into educational production function have revealed that variations in school expenditures are not systematically related to educational background, teaching experience, or class size; nor are better teachers paid more than lesser ones. School decision-making must move away from input directed policies to ones providing…

The importance of teacher quality for determining student outcomes is now well established. At the same time, the translation of what is known about teacher quality into effective policy is far from being institutionalized. The simplest summary of research into teacher quality is that some teachers are dramatically more effective than others but…

School policy debates vacillate between policies emphasizing improvement in general skills and those aimed at strengthening the linkages between schools and the workplace. While these policies do not necessarily conflict, each is frequently motivated by shortcomings in the other. This paper presents basic evidence about the very substantial…

This paper draws on the matched panel data of the UTD Texas School Project to investigate how shifts in salary schedules affect the composition of teachers within a district. When trying to estimate the true relationship between teacher quality and salaries, four methodological problems typically intervene: measuring teacher quality;…

Eric Hanushek and Steven Rivkin examine how salary and working conditions affect the quality of instruction in the classroom. The wages of teachers relative to those of other college graduates have fallen steadily since 1940. Today, average wages differ little, however, between urban and suburban districts. In some metropolitan areas urban…

Much of education policy focuses on improving teacher quality, but most policies lack strong research support. We use student achievement gains to estimate teacher value-added, our measure of teacher quality. The analysis reveals substantial variation in the quality of instruction, most of which occurs within rather than between schools. Although…