Using wage regression equations, this paper examines the wage determination process for educators at the elementary and secondary levels in Oregon. The propositions tested include whether educators are responsive to wage differentials between their teaching jobs and alternative occupations, as well as within the educator labor market, and whether these wage differentials tend to be eroded over time. The researchers conclude that educators are at least as responsive to wage differentials as other workers, but are not as responsive to differentials in teaching jobs as to those between teaching and other occupations. Wage differentials are generally found to erode over time; however, positive wage differentials tend to be liquidated more readily than negative differentials. This is especially true when the labor market is characterized by an excess supply of teachers. (Author/WD)