When schools and school districts have more money and spend more money, what do they spend it on?
We do know from many older studies that improving wages can improve the teacher workforce:
- Murnane and Olson (1989) find that salaries affect the decision to enter teaching and the duration of the teaching career.[1]
- Figlio (1997, 2002) and Ferguson (1991) find that higher salaries are associated with better qualified teachers[2]
- Loeb and Page (1998, 2000) find that raising teacher wages by ten percent reduces high school dropout rates by between three and six percent and increases college enrollment rates by two percent.[3]
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