Next Test – Value of $125,000-a-Year Teachers – NYTimes.com
A New York City charter school is experimenting with paying teachers nearly triple the national average teacher salary of public schools. The article below describes the result:
So what kind of teachers could a school get if it paid them $125,000 a year?
An accomplished violist who infuses her music lessons with the neuroscience of why one needs to practice, and creatively worded instructions like, “Pass the melody gently, as if it were a bowl of Jell-O!”
A self-described “explorer” from Arizona who spent three decades honing her craft at public, private, urban and rural schools.
Two with Ivy League degrees. And Joe Carbone, a phys ed teacher, who has the most unusual résumé of the bunch, having worked as Kobe Bryant’s personal trainer.
“Developed Kobe from 185 lbs. to 225 lbs. of pure muscle over eight years,” it reads.
They are members of an eight-teacher dream team, lured to an innovative charter school that will open in Washington Heights in September with salaries that would make most teachers drop their chalk and swoon; $125,000 is nearly twice as much as the average New York City public school teacher earns, and about two and a half times as much as the national average for teacher salaries. They also will be eligible for bonuses, based on schoolwide performance, of up to $25,000 in the second year…
The school received 600 applications. Mr. Vanderhoek interviewed 100 in person.
It's amazing to me that a school in NYC that pays $125,000 a year and expects teachers to work year round gets so much attention, while some international schools have been paying teachers nearly as much for decades to work a regular school year. Yet so many American teachers seem unaware of the career opportunities available at international schools! A salary of $100,000 is not unheard of in international schools, and often times that income is tax free (at least the majority of it, since it is considered “foreign earned income” by the IRS).
In economics we study how scarce resources are allocated by supply and demand in the market place. Demand for highly skilled, qualified teachers is huge in all kinds of schools, public, private, charter and international schools alike. But only once an American school like this New York charter school comes along and offers to pay teachers a salary more than double the national average (and then receives nearly a hundred applications for every opening) do we begin to read about teacher pay in the news and reflect on the roll it plays in attracting top notch, expert educators. From one economics teacher's perspective, it should come as no surprise at all that when a school offers a higher salary it will attract better teachers and thereby improve the quality of the education it provides.
International schools have known this simple fact for years. Unlike the American public school system, which from state to state essentially resembles the “monopsonistic employer” model (meaning each state has a “monopoly” of sorts on the hiring of teachers), the market for international teachers is highly competitive. In most big cities, even, there are several international schools competing to attract the best educators from the limited supply available. And in a particular country, for instance China, there are dozens of private international schools, all seeking to offer the best quality education in order to increase demand for enrollment, competing against one another to hire the best teachers they can.
The result of the competition between international schools for student enrollment is increased competition for skilled, qualified teachers. Add to this the fact that year after year there end up being shortages of qualified international teachers and you end up with the perfect recipe for teachers like myself and all the colleagues I've worked with over the years, upward pressure on the salaries and benefits packages offered by international schools.
The lesson here is clear from my perspective. Increased competition among schools for student enrollment will lead to increased competition among schools for better teachers, and therefore better teacher pay. The NYC charter school set out with a clear vision in mind for achieving students success. Attract the best teachers and we'll provide the best education. And in order to achieve this vision, it followed the most basic of economic principles, articulated so eloquently by Adam Smith himself:
Whoever offers to another a bargain of any kind, proposes to do this: Give me that which I want, and you shall have this which you want, is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of.
The bargain being offered to teachers in this case is an attractive salary, and all the schools in question are asking for in return is excellent teaching. “In this manner” schools obtain from teachers a commitment to excellence and teachers obtain from schools a salary that rewards them for this commitment. Society's need for excellent education and teachers' need for a living wage are met. But public schools go against this basic tenet of market doctrine when the monoposony that is the state public school system pays teachers not based on their achievement, training, excellence or results but on their years of service. The lack of competition for student enrollment leads to a failure of the incentive system for attracting good teaches, and what schools find themselves with is a burnt out, underpaid, disgruntled work force and test scores and student achievement that you'd expect to follow.
I hope this charter school succeeds. I hope the students' scores surpass those of their public school peers. I hope this not because I like to see the old model of education fail, but because I would love to see a new model, based on the simple market principle that individuals respond to monetary incentives, succeed. I can say from experience that the competition among international schools for the limited supply of skilled teachers benefits all the stakeholders in question: teachers are paid better, the schools that pay the most attract the best teachers and thereby attract the greatest demand for enrollment. The market has worked! If the New York charter school succeeds, how can this be ignored. How can America's other public schools not admit that to improve education, competition for students and teachers must be embraced.