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…

Brian Jacob examines challenges faced by urban districts in staffing their schools with effective teachers. He emphasizes that the problem is far from uniform. Teacher shortages are more severe in certain subjects and grades than others, and differ dramatically from one school to another. The Chicago public schools, for example, regularly receive…