One of the most straightforward ways school districts can obtain cost savings without harming students is to eliminate extra pay for teachers who earn a master’s degree. Simply by giving up the extra payment for the master’s degree, school districts in Florida could save better than 3 percent of their teaching personnel costs without losing any of their classroom effectiveness. In a paper just published in the Economics of Education Review, Matthew Chingos and I look at the characteristics of effective 4th through 8th grade teachers in Florida over the period 2002 to 2010.
We found that teachers with an M. A. degree were no more effective, on average, than teachers who lacked such a degree. Further, we found out that it did not make any difference from which public university in Florida a teacher had earned the degree. None of them had an educational program that correlated with a teacher’s classroom effectiveness.
Yet a teacher who has taught for 10 years will earn 6.5 percent more (or about $2500), if he or she has collected that extra diploma. Since about half the teachers have pursued that advanced degree–given the extra dollars, why not?–the state could save better than 3 percent of its teaching personnel costs by eliminating this useless feature of the teacher compensation scheme.