This CED report examines teacher pay and other compensation issues. Schools must be able to compete effectively for college-educated workers who have more career choices and see themselves as more mobile professionally than did earlier generations. Traditional compensation policies for teachers (salary schedules that reward only longevity and academic credentials, and pension policies that penalize mobile teachers and those who do not spend a lifetime career in teaching) are out of sync with the objective of expanding the pool of talented individuals who are willing to teach. (Contains 8 tables, 10 figures, 20 footnotes, and 100 endnotes.)