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Teacher Pay in a Competitive Market

This study examines how the large-scale expansion of charter schools and deregulation of teacher employment in New Orleans impacted teacher compensation. Charter schools, which dominate the New Orleans Public School System (NOPS), operate with decentralized and deregulated hiring practices aimed at improving efficiency by aligning teacher incentives with school improvement goals. Using data from a period when charter employment rose from 70% to nearly 100%, the researchers estimate wage models based on teacher qualifications, assignments, and performance.

Key find­ings in this study: — Char­ters val­ue mas­ter’s degrees, spe­cial­ized train­ing, and pre­ser­vice work expe­ri­ence but not for­mal teach­ing cer­tifi­cates. — Start­ing pay is influ­enced by exter­nal labor mar­ket con­di­tions, with non-lin­ear returns to expe­ri­ence favor­ing ear­ly-career gains. — Salary increas­es for teach­ing chal­leng­ing cours­es, improv­ing stu­dent out­comes, and test score growth are present but mod­est. — The use of sup­ple­men­tal pay and per­for­mance bonus­es is lim­it­ed. Over­all, the evi­dence on whether char­ter com­pen­sa­tion mod­els improve effi­cien­cy com­pared to tra­di­tion­al dis­trict con­tracts is mixed.

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