Teachers Would Prefer Cash

By 10/17/2014 0 Comments

In theory, public sector workers like teachers accept lower current salaries in exchange for better benefits like health care and pensions. But a new paper suggests that a common perception about how we pay public sector workers is fundamentally flawed.

A new National Bureau of Economic Research paper from Maria Fitzpatrick examines a real-life choice offered to Illinois teachers in the 1990s. The state offered late-career teachers a chance to upgrade their benefit at a very discounted rate. Based on their responses and take-up rates, they actually valued the pension at only about 20 cents on the dollar. In other words, they’d prefer to have $2 in current wages over $10 in pension wealth (adjusted for today’s dollars). Taxpayers and employers have to pay the full cost of the benefit, but, because the true costs are hidden, teachers don’t value them fully.

This is a bit like a Christmas gift from your Great-Aunt Mildred. She may have spent $50 on a dandy argyle sweater, but you might only think it’s worth $10. (This isn’t just a silly abstract example; economists have documented that this “deadweight loss” actually happens.)

In this metaphor, teacher pensions are like the sweater: Protective and well-intentioned, but ultimately under-valued and under-appreciated. Teachers would rather just have cash, or at least a nice gift card.

- Chad Aldeman

This first appeared on teacherpensions.org

The Twenty-Five Richest Elementary Schools in the Richest Region of the Country

At one elementary school, the average income is almost $250,000 per year. Is this school really more “public” than an inner-city Catholic school serving poor minority children? The public spends $12,000 per child on the former and $0 per child on the latter. Tell me again why that’s fair?

What the 2014 Senate Elections Might Mean for Education

By 10/16/2014 0 Comments

If the Republicans take the Senate, Senator Lamar Alexander would take the helm of the Senate HELP Committee, which is a big deal.

A Bad Idea Whose Time Has Come

By 10/16/2014 6 Comments

Before we retreat to the pre-NCLB era of grade-span testing or revert to some other testing-light position, let’s at least recall some of the benefits of annual testing of all kids.

What’s Right About Common Core

By 10/14/2014 1 Comment

The overheated rhetoric around Common Core elides the fact that it incorporates several fundamentally sound and long-overdue ideas that have gone missing from our schools for decades.

The New Education Trust Report: The Triumph of Hope Over Experience

When designing accountability systems, we need to find the sweet spot between defeatism and utopianism. In my view, that’s exactly what the states are trying to do. They deserve our praise, not our derision.

Ed Reform’s Blind Spot: Catholic Schools and Social Capital

By 10/13/2014 1 Comment

By ignoring the closure of urban Catholic schools, we have not only allowed high-quality seats to disappear, we’ve also allowed the further deterioration of the threadbare social fabric of fraying communities.

Howls of Protest? Check!

By Guest Blogger 10/10/2014 0 Comments

Whatever the requirements are for earning different credentials, however, the true value of a high school diploma is established by the colleges that admit and the employers who hire our high school graduates.

Behind the Headline: Montgomery School Officials Ask for Delay in Using New State Tests for Graduation

By 10/10/2014 0 Comments

In Maryland, where students will take new tests based on the Common Core standards for the first time this year, one school board is asking the state to delay a requirement that students pass the new tests to graduate from high school.

School Reform, Philadelphia Style

By 10/08/2014 0 Comments

On Monday, the Philadelphia School Reform Commission shocked the city by announcing that it would unilaterally cut health care benefits to city teachers rather than continue to negotiate with the teacher’s union.

Posts by Authors

  • Mark Bauerlein
  • John Chubb
  • Martha Derthick
  • A. Graham Down
  • Joshua Dunn
  • Education Next
  • Williamson Evers
  • Chester E. Finn, Jr.
  • Jay P. Greene
  • James Guthrie
  • Eric Hanushek
  • Bryan Hassel
  • Emily Ayscue Hassel
  • Frederick Hess
  • Paul Hill
  • Michael Horn
  • William Howell
  • Marci Kanstoroom
  • Peter Meyer
  • George Mitchell
  • Paul E. Peterson
  • Michael Petrilli
  • Michael Podgursky
  • Andy Smarick
  • Bill Tucker
  • Herbert Walberg
  • Martin West
  • Blogs

  • Organizations

    Sponsored Results
    About the Blog

    The Ed Next blog aims to provide lively commentary on education news and research and to bring evidence to bear on current education policy debates.

    Our bloggers include editors at Education Next magazine and others who have written for the magazine. Education Next is a quarterly journal of opinion and research about education policy published by the Hoover Institution at Stanford University, and additionally sponsored by the Program on Education Policy and Governance at Harvard University and the Thomas B. Fordham Foundation.

    The opinions expressed by the Ed Next bloggers and those providing comments are theirs alone, and do not reflect the opinions of Educationnext.org, Education Next magazine, or its sponsors. Educationnext.org is not responsible for the accuracy of any of the information supplied by the bloggers.


    Sponsors

    The Hoover Institution at Stanford University - Ideas Defining a Free Society

    Harvard Kennedy School Program on Educational Policy and Governance

    Thomas Fordham Institute - Advancing Educational Excellence and Education Reform

    Sponsors