Friday, February 2, 2007

Overpaid Underperformers

The stylized facts about American education:
  1. Students do not receive an adequate education
  2. Teachers do not receive adequate salaries
Most people would agree to these statements, especially relative to cities and high cost-of-living regions. But what if the only the first statement were true? Jay Greene and Marcus Winters argue in today's Opinion Journal that this is the case; and the numbers back them up.
Who, on average, is better paid--public school teachers or architects? How about teachers or economists? You might be surprised to learn that public school teachers are better paid than these and many other professionals. According to the Bureau of Labor Statistics, public school teachers earned $34.06 per hour in 2005, 36% more than the hourly wage of the average white-collar worker and 11% more than the average professional specialty or technical worker
But what about in the cities?
Metro Detroit leads the nation, paying its public school teachers, on average, $47.28 per hour. That's 61% more than the average white-collar worker in the Detroit area and 36% more than the average professional worker. In metro New York, public school teachers make $45.79 per hour, 20% more than the average professional worker in that area. And in Los Angeles teachers earn $44.03 per hour, 23% higher than other professionals in the area.
Those aren't cities known for their high student performance.

Public school teachers rank highly on my list of despised professions. Like bureaucrats, sugar planters and oilmen, these folks fleece the taxpayers by siphoning off a little of their booty to a hogpen of pliant lawmakers. Meanwhile, American children born into poor neighborhoods are trapped there as hostages of the American Federation of Teachers, whose bosses shed streams of crocodile tears at the fate of their own prisoners.

2 comments:

Anonymous said...

Expressing wages on an hourly basis raises two questions. First, does it account for hours that teachers spend working outside of school hours, grading and preparing? Second, while there is some tradeoff between work and leisure, a forced unpaid vacation for 10 weeks or so in the summer is not what many workers want. How do the wages compare on a simple annual salary basis?

Macro Guy said...

The authors make an argument that hourly wages are the correct way to evaluate; I won't repeat it here.

Workers in many professions would love to have the freedom to take long summer vacations; neither situation (being forced to vacation or being prevented from vacationing) is optimal, but neither is clearly superior either. And since a variety of employment opportunities exist for teachers during the summer, they have greater freedom than most workers to supply their labor elastically.

If the market freely determined the high hourly wages of teachers, I would make no complaint. Plenty of jobs are 'overpaid' by the market in terms of social usefulness, etc. But the means by which teachers unions have aggressively outpaced the market are economically equivalent to a mafia monopoly.