Reevaluating the Effect of Non-Teaching Wages on Teacher Attrition

Abstract

Most researchers find that the non-teaching wage has a significant effect on teacher attrition. Surprisingly no study that estimates this effect actually uses former teachers? wages. The use of aggregate wage data can potentially cause upward bias coefficients due to selection issues. Using wages of former teachers in a simultaneous probit-tobit system of equations, the effect is estimated and found to be insignificant. The results indicate that higher teaching wages and student teaching significantly lower attrition while being attacked or threatened during the previous school year and whether the teacher lives in a household with income above $40,000 significantly increase attrition.