The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National Data

In recent decades, parallel literature has documented the magnitudes and effects of teacher turnover and the impact of state school finance reforms (SFRs). In this paper, we examine SFRs as possible mechanisms to improve teacher salary, turnover, and job satisfaction by using nationally representati...

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Main Authors: Tuan D. Nguyen, J. Cameron Anglum, Michael Crouch
Format: Article
Language:English
Published: SAGE Publishing 2023-05-01
Series:AERA Open
Online Access:https://doi.org/10.1177/23328584231174447
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author Tuan D. Nguyen
J. Cameron Anglum
Michael Crouch
author_facet Tuan D. Nguyen
J. Cameron Anglum
Michael Crouch
author_sort Tuan D. Nguyen
collection DOAJ
description In recent decades, parallel literature has documented the magnitudes and effects of teacher turnover and the impact of state school finance reforms (SFRs). In this paper, we examine SFRs as possible mechanisms to improve teacher salary, turnover, and job satisfaction by using nationally representative data from 2000 to 2016 and leveraging variation in SFR timing. We find that SFRs increased teacher salaries by approximately $4,000 and reduced teacher turnover by three percentage points, on average, though gains in both outcome measures took up to a decade to emerge. We observe larger salary gains among teachers in high-poverty and high-minority school contexts, though declines in their corresponding turnover behaviors were similar to average findings. As policymakers seek to address heightened concerns regarding teacher retention and shortages, our findings suggest targeted salary policies may improve rates of teacher attrition.
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spelling doaj.art-4778ea01ae714a7d99e5df4c8c7055f42023-05-26T15:04:37ZengSAGE PublishingAERA Open2332-85842023-05-01910.1177/23328584231174447The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National DataTuan D. NguyenJ. Cameron AnglumMichael CrouchIn recent decades, parallel literature has documented the magnitudes and effects of teacher turnover and the impact of state school finance reforms (SFRs). In this paper, we examine SFRs as possible mechanisms to improve teacher salary, turnover, and job satisfaction by using nationally representative data from 2000 to 2016 and leveraging variation in SFR timing. We find that SFRs increased teacher salaries by approximately $4,000 and reduced teacher turnover by three percentage points, on average, though gains in both outcome measures took up to a decade to emerge. We observe larger salary gains among teachers in high-poverty and high-minority school contexts, though declines in their corresponding turnover behaviors were similar to average findings. As policymakers seek to address heightened concerns regarding teacher retention and shortages, our findings suggest targeted salary policies may improve rates of teacher attrition.https://doi.org/10.1177/23328584231174447
spellingShingle Tuan D. Nguyen
J. Cameron Anglum
Michael Crouch
The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National Data
AERA Open
title The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National Data
title_full The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National Data
title_fullStr The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National Data
title_full_unstemmed The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National Data
title_short The Effects of School Finance Reforms on Teacher Salary and Turnover: Evidence from National Data
title_sort effects of school finance reforms on teacher salary and turnover evidence from national data
url https://doi.org/10.1177/23328584231174447
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