Dayna Jean DeFeo

Measuring the appropriate level of teacher compensation for different working conditions requires overcoming a number of empirical challenges, including defining and measuring differences in qualifications, effects of non-wage compensation, financial constraints, and lack of market clearing. We address those challenges in a study of teacher compensation in Alaska’s 462 public schools in 53 districts. Each of our three linked empirical specifications produces a set of different compensation adjustments needed to offset differences in working conditions across schools and communities. However, an overall pattern is clear: if districts wish to attract and retain teachers of similar qualifications across all schools, schools serving mainly racially minoritized and low-income populations will need to pay substantially more than they currently do. Estimated required compensation adjustments are quite large in some cases, illustrating the need to address working conditions and other factors that affect teachers’ choices to accept and stay in jobs at high-need schools.