Student Outcomes: The Role of Teacher Salary Differentials

This dissertation examines how teacher salaries affect student outcomes. Using the Common Core Data for the school year 2005-06 collected by the National Center for Education Statistics (NCES) and hierarchical linear models, this study found that student teacher ratios, the percentage of teachers with advanced degrees, and the percentage of teachers with more than five years of teaching experience in a school were highly and positively associated with teacher salaries.

Using the CCD file and OLS regression, the analyses indicated that school districts with higher teacher salaries had lower non-graduation rates and lower dropout rates. However, the association was weak. The districts having higher student teacher ratios and higher percentages of teachers with advanced degrees had lower graduation rates and higher dropout rates. When there were higher percentages of experienced teachers, there were increased graduation rates and reduced dropout rates.

The hierarchical regression analysis based on the data derived from the Educational Longitudinal Study 2002 indicated that standardized math scores were strongly and positively related to teacher salaries and math teachers' experience. Students were more likely to have expectations of earning a college degree in the schools with higher teacher salaries, more experienced math teachers, more teachers with advanced degrees, and more excellent teachers.