Alex Tabarrok:

In my 2011 book, Launching the Innovation Renaissance, I wrote:

At times, teacher pay in the United States seems more like something from Soviet-era Russia than 21st-century America. Wages for teachers are
low, egalitarian and not based on performance. We pay physical education teachers about the same as math teachers despite the fact that math teachers
have greater opportunities elsewhere in the economy. As a result, we have lots of excellent physical education teachers but not nearly enough excellent
math teachers. The teachers unions oppose even the most modest proposals to add measures of teacher quality to selection and pay decisions.

As I wrote, however, Wisconsin passed Act 10, a bill that discontinued collective bargaining over teachers’ salary schedules. Act 10 took power away from the labor unions and gave districts full autonomy to negotiate salaries with individual teachers. In a paper that just won the Best Paper published in AEJ: Policy in the last three years, Barbara Biasi studies the effect of Act 10 on salaries, effort and student achievement.

Compensation of most US public school teachers is rigid and solely based on seniority. This paper studies the effects of a reform that gave school districts in Wisconsin full autonomy to redesign teacher pay schemes. Following the reform some districts switched to flexible compensation. Using the expiration of preexisting collective bargaining agreements as a source of exogenous variation in the timing of changes in pay, I show that the introduction of flexible pay raised salaries of high-quality teachers, increased teacher quality (due to the arrival of high-quality teachers from other districts and increased effort), and improved student achievement.

We still have a long way to go but COVID, homeschooling and open-access voucher programs have put a huge dent in the power of the teacher’s unions. There is now a chance to bring teacher pay into the American model. Moreover, such a model is pro-teacher! Not every district in Wisconsin grasped the opportunity to reform teacher pay but those districts that did raised pay considerably. Appleton district, for example, instituted pay for performance, Oshkosh did not. Prior to the Act salaries were about the same in the two districts:

After the expiration of the CBAs, the same teacher could earn up to $68,000 in Appleton, and only between $39,000 and $43,000 in Oshkosh.

——-

Wisconsin’s Act 10, Flexible Pay, and the Impact on Teacher Labor Markets: Student test scores rise in flexible-pay districts. So does a gender gap for teacher compensation.

If not to teacher salaries, where is this money going?

More on Act 10 and the related Milwaukee pension scandal.

——-

More. “Important insights into the impact of flexibility in teacher pay schemes on student outcomes.”

——

The data clearly indicate that being able to read is not a requirement for graduation at (Madison) East, especially if you are black or Hispanic”

My Question to Wisconsin Governor Tony Evers on Teacher Mulligans and our Disastrous Reading Results

2017: West High Reading Interventionist Teacher’s Remarks to the School Board on Madison’s Disastrous Reading Results 

Madison’s taxpayer supported K-12 school district, despite spending far more than most, has long tolerated disastrous reading results.

“An emphasis on adult employment”

Wisconsin Public Policy Forum Madison School District Report[PDF]

WEAC: $1.57 million for Four Wisconsin Senators

Friday Afternoon Veto: Governor Evers Rejects AB446/SB454; an effort to address our long term, disastrous reading results

Booked, but can’t read (Madison): functional literacy, National citizenship and the new face of Dred Scott in the age of mass incarceration.

When A Stands for Average: Students at the UW-Madison School of Education Receive Sky-High Grades. How Smart is That?