This report describes the results of research into New Jersey public school teacher compensation. The research was initiated in response to New Jersey Governor Chris Christie's attacks on New Jersey teachers' unions and his allegations that New Jersey public school teachers are overpaid. This analysis seeks to answer three questions about teacher compensation in New Jersey: (1) Are New Jersey public school teachers overcompensated? (2) How do public school teachers compare with other New Jersey employees in terms of pay equity across gender, racial, and ethnic categories? and (3) Does participation in unions increase public school teacher compensation? The report findings detailed in the report include: (1) New Jersey public school teachers are in fact undercompensated, not overcompensated; (2) Female, black, and Hispanic public school teachers enjoy greater pay equity compared with the rest of the labor market in New Jersey, in part because of the transparency afforded by collective bargaining agreements; and (3) Teachers' union membership in the United States produces measurable earnings improvements for union members, acting as an important counterbalance to the teacher pay penalty.