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New study: total compensation of public school teachers is 52% greater than fair market value

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Whenever advocates of greater spending on education try to argue that teachers are not paid enough, they always compare teachers to other workers to other workers in terms of years spent in college. On that view, a software engineer with 6 years of college (B.S. and M.S. in computer science) is the same as an English teacher with 6 years of “Education college” (B.Ed and M.Ed in education). But is the ability to write code to perform real-time commercial transactions in a distributed database environment really deserving of the same total compensation as teaching 6-year olds how to read Dr. Seuss books? Is the supply of each skill set the same? Is the demand for each skill set the same? What should the price of each kind of labor be?

Let’s see what this new study from the American Enterprise Institute says.

Excerpt:

The teaching profession is crucial to America’s society and economy, but public-school teachers should receive compensation that is neither higher nor lower than market rates. Do teachers currently receive the proper level of compensation? Standard analytical approaches to this question compare teacher salaries to the salaries of similarly educated and experienced private-sector workers, and then add the value of employer contributions toward fringe benefits. These simple comparisons would indicate that public-school teachers are undercompensated. However, comparing teachers to non-teachers presents special challenges not accounted for in the existing literature.

First, formal educational attainment, such as a degree acquired or years of education completed, is not a good proxy for the earnings potential of school teachers. Public-school teachers earn less in wages on average than non-teachers with the same level of education, but teacher skills generally lag behind those of other workers with similar “paper” qualifications.

Here’s what the study shows:

  • The wage gap between teachers and non-teachers disappears when both groups are matched on an objective measure of cognitive ability rather than on years of education.
  • Public-school teachers earn higher wages than private- school teachers, even when the comparison is limited to secular schools with standard curriculums.
  • Workers who switch from non-teaching jobs to teaching jobs receive a wage increase of roughly 9 percent. Teachers who change to non-teaching jobs, on the other hand, see their wages decrease by roughly 3 percent. This is the opposite of what one would expect if teachers were underpaid.
  • Pension programs for public-school teachers are significantly more generous than the typical private sector retirement plan, but this generosity is hidden by public-sector accounting practices that allow lower employer contributions than a private-sector plan promising the same retirement benefits.
  • Most teachers accrue generous retiree health benefits as they work, but retiree health care is excluded from Bureau of Labor Statistics benefits data and thus frequently overlooked. While rarely offered in the private sector, retiree health coverage for teachers is worth roughly an additional 10 percent of wages.
  • Job security for teachers is considerably greater than in comparable professions. Using a model to calculate the welfare value of job security, we find that job security for typical teachers is worth about an extra 1 percent of wages, rising to 8.6 percent when considering that extra job security protects a premium paid in terms of salaries and benefits.

And they conclude:

We conclude that public-school teacher salaries are comparable to those paid to similarly skilled private sector workers, but that more generous fringe benefits for public-school teachers, including greater job security, make total compensation 52 percent greater than fair market levels, equivalent to more than $120 billion overcharged to taxpayers each year.

Well, maybe teachers are overpaid – but that would be OK if they were somehow super intelligent and productive.

Are teachers intelligent?

CBS Moneywatch explains what the research shows about teachers.

Excerpt:

Research over the years has indicated that education majors, who enter college with the lowest average SAT scores, leave with the highest grades.   Some of academic evidence documenting easy A’s for future teachers goes back more than 50 years!

The latest damning report on the ease of majoring in education comes from research at the University of Missouri, my alma mater.  The study, conducted by economist Cory Koedel shows that education majors receive “substantially higher” grades than students in every other department.

Koedel examined the grades earned by undergraduates during the 2007-2008 school year at three large state universities that include sizable education programs — University of Missouri, Miami (OH) University and Indiana University.  The researcher compared the grades earned by education majors with the grades earned by students in 12 other majors including biology, economics, English, history, philosophy, mathematics, chemistry, psychology and sociology.

Education majors enjoyed grade point averages that were .5 to .8 grade points higher than students in the other college majors. At the University of Missouri, for instance, the average education major has a 3.80 GPA versus 2.99 GPA (science, math, econ majors), 3.12 GPA (social science majors) and 3.16 GPA (humanities majors).

So it is easy for teachers with lower SAT scores to get much higher grades than other applicants to non-teaching programs with much higher SAT scores. It doesn’t sound like the smartest people go to teachers college. Nor does it sound as if they learn anything very challenging when they are there.

Are teachers doing a good job of teaching useful skills?

CNN sheds some light on how well teachers perform.

Excerpt:

Last week, the College Board dealt parents, teachers and the education world a serious blow. According to its latest test results, “SAT reading scores for the high school class of 2011 were the lowest on record, and combined reading and math scores fell to their lowest point since 1995.”

The reading scores, which stand at 497, are noticeably lower than just six years ago, when they stood at 508. And it’s just the second time in the last 20 years that reading scores have dropped so precipitously in a single year.

[…]The 2011 budget for the Department of Education is estimated to top $70 billion, while overall spending on public elementary and secondary education is about $600 billion a year. By comparison, in 1972, before the Department of Education even existed, SAT critical reading scores for college-bound seniors were above 525, more than 20 points higher than they are today, while today’s math scores are only slightly better than in 1972.

So, not only are these highly-paid teachers less intelligent (on average) than other college applicants, but they also fail to educate our children properly. And we are forced to pay them, through taxes, regardless of how they perform. Our children who are suffering from this failed monopoly.

Do teacher unions improve teacher quality?

And do you know who protects bad teachers from being fired, and prevents good teachers from being paid more?

This is why we need to abolish the federal Department of Education and teacher unions. Why are we paying these people ridiculous salaries and benefits to fail our children?

Must-see videos on education policy

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One day of substitute teaching qualifies union lobbyists for teacher pensions

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From the Chicago Tribune. (H/T Marathon Pundit)

Excerpt:

Two lobbyists with no prior teaching experience were allowed to count their years as union employees toward a state teacher pension once they served a single day of subbing in 2007, a Tribune/WGN-TV investigation has found.

Steven Preckwinkle, the political director for the Illinois Federation of Teachers, and fellow union lobbyist David Piccioli were the only people who took advantage of a small window opened by lawmakers a few months earlier.

The legislation enabled union officials to get into the state teachers pension fund and count their previous years as union employees after quickly obtaining teaching certificates and working in a classroom. They just had to do it before the bill was signed into law.

Preckwinkle’s one day of subbing qualified him to become a participant in the state teachers pension fund, allowing him to pick up 16 years of previous union work and nearly five more years since he joined. He’s 59, and at age 60 he’ll be eligible for a state pension based on the four-highest consecutive years of his last 10 years of work.

His paycheck fluctuates as a union lobbyist, but pension records show his earnings in the last school year were at least $245,000. Based on his salary history so far, he could earn a pension of about $108,000 a year, more than double what the average teacher receives.

[…]Over the course of their lifetimes, both men stand to receive more than a million dollars each from a state pension fund that has less than half of the assets it needs to cover promises made to tens of thousands of public school teachers. With billions of dollars in unfunded liabilities, the Illinois Teachers’ Retirement System, which serves public school teachers outside of Chicago, is one of several pension plans that are in debt as state government reels in a fiscal crisis.

This is why we need to rein these unions. Not only do they not provide quality educations for poor students in the inner city, but they are corrupt and wasteful.

If you missed my post on Ohio State Issue 2, then you should read it here.

News

California public schools introduce gay indoctrination starting in kindergarten

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From the liberal Los Angeles Times. (H/T Come Reason)

Excerpt:

At Wonderland Avenue Elementary School in Laurel Canyon, there are lesson plans on diverse families — including those with two mommies or daddies — books on homosexual authors in the library and a principal who is openly gay.

But even at this school, teachers and administrators are flummoxed about how to carry out a new law requiring California public schools to teach all students — from kindergartners to 12th graders — about lesbian, gay, bisexual and transgender Americans in history classes.

“At this point, I wouldn’t even know where to begin,” Principal Don Wilson said.

Educators across the state don’t have much time to figure it out. In January, they’re expected to begin teaching about LGBT Americans under California’s landmark law, the first of its kind in the nation.

Notice how dissent from GLBT indoctrination is portrayed in the mainstream media:

In 2005, L.A. Unified debuted the nation’s first chapter in a high school health textbook on LGBT issues covering sexual orientation and gender identity, struggles over them and anti-LGBT bias. A section on misconceptions says sexual orientation is not a choice — a statement many religious conservatives disagree with.

Unfortunately for the leftist media, the peer-reviewed studies show that homosexuality is a choice – but that’s not what young people are going to learn in California public schools. They’ll learn what the GLBT lobby wants children to believe, instead.

And it’s OK to deprive a child of a mother or father:

On a recent morning, teacher Jane Raphael invited her two dozen kindergartners, first-graders and second-graders to sit in a circle and tell a story about their family. The students described a cross section of modern-day America: moms and dads and athletic siblings, crazy dogs, a cat named Lulu, a fish that died, divorced parents, a girl with two mommies.

You can bet that the public schools won’t be teaching the children about gay crime horror stories like Joshua Brown or Frank Lombard. These stories are a thousand times more horrifying than Matthew Shepard, but no one has ever heard about those stories. No, that’s not what the GLBT lobby wants children to learn about at all.

And that’s the problem with public schools – they only tell children what the government wants the special interest groups who get them elected want children to hear. The government wants to get re-elected, so they put public functions up for sale to the highest bidder. Special interest groups like the GLBT lobby promise them votes and campaign donations in exchange for telling children what they want the lobby wants them to believe. They only want to minimize the damage is to cut off the funding for government functions – perhaps by giving parents more control over education with voucher programs.

Even some Christian conservatives support this by voting to transfer money from private taxpayers into public schools. I once knew a Christian woman who told me that forcing her husband to pay more in taxes for public schools was a good idea, because public schools fed children free breakfasts so that all the children would be “equal”. Although she denied it, what she was really voting for was the indoctrination of children with gay proganda using her family’s money – money earned by her Christian husband. Apparently, she thought that the public schools needed her husband’s money more than her family did. When pressed by me, she admitted that she held that view because it made her feel good – she had never thought about the consequences of her voting for her husband’s ability to lead the family in a Christian direction.

Lenny has more to say about this decision by the California public schools.