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Teacher Pay Rises—but Not Enough To Shrink Pay Gap

This relative pay penalty—which is adjusted for education, experience, and demographic characteristics—grew to a record 26.6% in 2023.

October 1, 2024 by CEPR Leave a Comment

By Sylvia Allegretto

Despite a small improvement in weekly wages, the pay penalty for teachers—the relative gap between the weekly wages of teachers and other college graduates—grew to a record 26.6% in 2023, according to a new report from CEPR Senior Economist Sylvia Allegretto jointly released with the Economic Policy Institute.

This relative pay penalty—which is adjusted for education, experience, and demographic characteristics—grew to a record 26.6% in 2023. The average weekly wage of teachers has been falling behind that of other college graduates since 1996, when the teacher pay penalty was just 6.1%.

The report also features state-level estimates, which show that teachers were paid less than other college graduates in every state. In seven states, the teacher pay penalty exceeded 30%, with the widest gap being in Colorado (38.4%), Arizona (32.9%) and Virginia (32.0%).

Read the full report here.

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This post was previously published on cepr.net and under a Creative Commons license CC BY-ND 4.

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About CEPR

The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people’s lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.