Would School Choice Change the Teaching Profession?

I. Introduction

Teacher organizations such as the National Education Association and the American Federation of Teachers are greatly opposed to school choice in its different forms such as charter schools, vouchers, tax credits for private school tuition, and inter-district choice). This makes an impression that teachers merely stand to lose from school choice. However, in theory, schools facing choice-based incentives would have a higher demand for teachers who enhance the schools’ ability in attracting enrollees. In the long run, school choice would influence who becomes (and stays) a teacher if it impacts schools’ demand for particular teacher attributes. 
If school choice were to have an effect on schools’ demand for particular teacher attributes, the concern would be identifying what are those characteristics. Moreover, such demand would create “winners” and “losers” among present teachers as some would find greater or lesser demand for their services. However, society should not only limit their interest on the impact of choice on incumbent teachers but also on the aspiring teachers (who are in an environment of greater school choice). Furthermore, society is assumed to be essentially interested in the education received by children, which is a function of who chooses to teach, thus somewhat indirectly a function of choice, when choice influences the demand for particular teacher attributes.
The empirical strategy for this study is grounded on a simple economic argument: If schools that are subject to stronger choice-based incentives have higher demand for particular teacher attributes, the salary paid for that attributes and the amount of that characteristics hired should be higher. Thus, schools should be shifting upwards the supply curve for that attribute.
This is tested using two types of evidence. First, the traditional form of choice – choice of private schools, Tiebout choice among public school districts, and parents’ selection of school by picking a residence – is analyzed. Traditional forms of choice are necessary since different metropolitan areas have various long-run, general equilibria having diverse amounts of traditional school choice. In comparing various metropolitan areas, the primary empirical setback is determining the exogenous variations in their degree of traditional school choice.
However, traditional school choice does not fully reflect the incentives that are produced by reforms like charter schools. Thus the second analysis would deal with comparing charter school teaching to public and private school teaching. The focus would be on the query: do charter schools pay more for the desired teacher attributes, or hire more of that attributes? In dealing with this analysis, three empirical challenges arise:
1. It is curial to evaluate schools in similar environment
2. It is necessary to make certain that the variations are not merely composition effects
3. Any teacher study in choice schools is influenced by the fact that most choice schools are new school, thus making it hard to identify the teaching aspects that are defined by the school’s being a choice school versus the school’s being a new school.
 
II. The Teaching Profession and School Choice: What is Known

Several previous literatures have illustrated that teachers’ unions compressed the spread of teacher salaries within a district so that teachers having the same seniority and the same level degree are expected to receive close if not identical wages.
Undeniably however, the discrepancies are too small to make teaching an equivalently appealing profession to people having more and less skill and abilities. According to studies such as Murnane (1984), Maski (1987), Murnane and Olsen (1989, 1990), and Monk (1994), people having high aptitude or skills on certain subjects are less inclined to teach or less likely to stay teaching if they do start. This concern has gotten even more severe as other occupations such as management, law and medicine began to accommodate women, and such professions are favored due to higher reward in terms of seniority.
This study also deals with “professionalization” of teaching, a movement that includes policies like in-service training, apprenticeships and peer instruction, higher certification standards for new teachers and rewards for teachers earning additional credentials. The movement involves an element that is characteristic of most occupation, but is not combined with the market orientation of most jobs, where credentials retain minimal standards and rewards are greatly based on the market’s perception on a professional. However, “professionalization” is a misnomer for the movement as it presently stands, since the bundle of policies is more of a reflection of craft unions considering their opposition to market orientation and their traditional dependence on credentials. However, many teachers do desire teaching to be more professional, in terms of being filled with high productivity individuals who are given rewards in line with their performance.
Lastly, it is helpful to consider the choice effects by comparing teachers in regular public and private schools, given that the latter are regularly subject to market forces and have an incentive to hire teachers who draws in tuition-paying pupils. In the study conducted by Ballou (1996) and Ballou and Podgrusky (1997, 1998) it was observed that private schools value teacher skills more in employing decisions than public schools do. Moreover, the teacher pay in private schools is less compressed teacher pay and more closely linked to skills, in association to public schools.
However, there are number of reasons private school tuitions are not ideal guide to what teachers will experience in choice schools. Private schools normally pay teacher wages that are about 60 percent of local public school wages is possibly due to:
1. Subject to different financial restraint: Private school tuition is not government financed and parents of students of private schools are required to pay taxes that support the public schools
2. Religious affiliations: Private schools are more likely to have a religious affiliation
3. Student population: Private schools choose students through admission testing
 
III. Empirical Study

A. The Empirical Strategy for Comparing Metropolitan Areas with Different Degrees of Choice
Consider an index of the degree to which schools are subject to incentives that are determined by parents’ choice, assuming that the teacher supply in terms of teacher attributes, number of individuals, degrees, and so on, is similar for all in the United States. Testing on whether the choice leads to schools demanding more for a certain teacher attributes may, however, have a problem. For instance, if a metropolitan area has more employment in high technology industries, it may have a higher demand for teachers possessing math and science skills; and employment in such industries may just be inadvertently correlated with the school choice index. Thus making it crucial to control for observable factors that are potential determinants of demand for certain teacher attributes.
The test would be more useful if metropolitan areas have equivalent supplies of teachers. However, an omitted determinant of the teacher supply is not likely to produce a false conclusion that school choice increases or decreases the demand for a certain teacher attributes.

B. The Empirical Strategy for Comparing Public, Charter, and Private School
In considering the comparison of schools in different sectors (public, private and charter), the test will be on the assumption that charter and private schools have higher choice-driven incentives than public schools. The identification problem in this test is that the presence of charter (or private) school may mirror factors in an area’s demand for teacher attributes, also, charter schools are not equally distributed across the United States due to the considerable discrepancies in states’ charter school laws.
Moreover, an additional problem with such comparison would be charter schools may enter and merely replace a part of the public school sector which had demand for teacher attributes that similar to the demands of charter schools for teacher aspects. Taking this into account before comparing, it can be observed that the gap between the charter and public school sectors could be more precisely described as a composition effect.

C. The Measurement of Teacher Characteristics and the Wages Paid to those Characteristics
The quantity of teacher attributes in metropolitan areas is measured by taking the weighted mean of the teachers attributes in the SASS.[1] The salary of a teacher attribute is measured by calculating the slope of the relationship between teachers’ log earnings and teachers’ log attributes among teachers in the metropolitan area.

D. Instrumental Variables for the Metropolitan Area Measures of School Choice
Metropolitan areas in the United States significantly differ in the extent to which parents can simply select a residence in another school district (Tiebout choice) and the tuition paid to private school of a certain quality. The Tiebout choice or traditional choice among public school districts differs among metropolitan areas primarily due to random topographic and historical factors.
A particularly good measure of the degree of Tiebout choice in a metropolitan area is equal to 1 minus a Herfindahl index based on the enrollment district shares in the metropolitan area. This is the probability that in an arbitrary encounter, two students in the metropolitan area would be admitted into different school districts. Thus if there were only one district, the probability would be equal to one. In contrast, having more than one district, the probability would become very small.
Furthermore, the number of private school places (of a certain quality) that are accessible at a specific tuition differs across metropolitan areas in the United States. For instance, in several metropolitan areas, about 15 percent of the elementary student population is registered in private schools where tuition is roughly two-thirds of the schools’ per-student spending. For other metropolitan areas, less than one percent of the elementary school population is enrolled in such schools, which is low comparing to a typical metropolitan area wherein it is about six percent. In other words, the private schooling supply differs across metropolitan areas, hence, the extent to which parents have a selection between public and private schools changes across metropolitan areas.

IV. Data

The strategy for this study requires data on teachers, school districts, private schooling, demographics, geography (streams), and religion.
The SASS is a stratified random sample of public and private school teachers and administrator in the United States. The 1993-1994 sample which comprises of 47,105 public school teachers is primarily used for the study. For some variables, the 1993-1994 sample is pooled with the 1990-1991 sample (46,705 public school teachers) in order to maximize the number of teachers who stand for each metropolitan area. Some of the SASS variables used are:
1. Teacher’s salary
2. Years of teaching experience – which may indicate the likelihood of remaining as a teacher  for the following years
3. College where the baccalaureate degree was earned – an indicator the teacher was a math or science major
4. Number of undergraduate and graduate courses taken in math and science – an indicator if the baccalaureate degree earned by the teacher is in a field of the arts and sciences as opposed to a degree in education
5. Number of hours per week (beyond the required hours) spent on activities linked to the students’ academic progress
6. Number of hours per week (beyond the required hours) spent on activities linked to the students’ extra-curricular progress
The survey’s objective was to give evidence on who becomes a charter school teacher. The response rate to the survey, however, was roughly 70 percent (slightly lower for administrators, and somewhat higher for teachers).
Although the SASS does not include a measure of individual teachers’ proficiency; the survey has information on each teacher’s college, which is a good indicator of the quality of education and to some degree, the skills and abilities of the teacher.
 
V. The Effects of Traditional Choice on the Teaching Profession:  Results

The test in this section is if both quantity and the salary of the attributes are increasing in the measures of choice.  The result showed that teacher working in a metropolitan area with more Tiebout and more private school choice attended more selective colleges. An area with a high extent of Tiebout choice has teachers who went to colleges that were ranked 0.403 levels higher than an area with lower Tiebout choice. An area with a maximal private school choice has teachers who were enrolled in colleges that were ranked 0.13 levels greater than an area having minimal private school choice.
In addition, since teachers are known to be excessively drawn from the bottom half of the college-going populations’ capacity spread, comparisons were made on who are likely to attend a college that is at least “competitive plus” in selectivity. The results confirm that school in an area having higher Tiebout choice demand more college quality from teachers. The finding showed that enrollment in a college that is at least “competitive plus” is higher in metropolitan areas having more traditional choice.
- Teacher in an area with a greater degree of Tiebout choice has 8.4 percent higher possibility to have attended such college, than a teacher in an area with minimal Tiebout choice.
- While an area having a higher degree of private school choice has an additional 5.4 percent likelihood of attending a college that is at least “competitive plus”.
In terms of salary, schools that are in metropolitan areas with higher Tiebout choice seem to be moving up the supply curve for teachers’ college quality. However, it is uncertain if metropolitan areas with greater private school choice also have higher demand.
- Comparing to teachers in an area having minimal Tiebout choice, a teacher in an area with higher level of Tiebout choice is given salary that is 8.0 percent higher if that teacher attended a college that is a t least “competitive plus”.
- The influence, however, of the level of private school choice on salary for this attribute is not statistically significant.
Additionally, it was observed that a teacher in an area with a greater degree of Tiebout choice is 16.5 percent more likely to attend a college that is at least “competitive” (in comparison to a teacher in an area with little Tiebout choice), that teacher would also receive a salary that is 6.6 percent higher if the college attended is at least “competitive”. While an area having a higher degree of private school choice has an extra 5.3 percent possibility of attending a college that is at least “competitive”, however, the extent of private school choice does not have a statistically significant impact on the salary for this attribute.
Another aspect dealt with in this paper is motivated by the considerable evidence that implies that schools have a certain need for teachers having math or science skills. The findings suggest that in areas having greater traditional school choice, there is a greater likelihood that teachers have math and science skills:
- Teachers in an area with higher Tiebout choice: 15.2 percent more likely to be a math or science major and took 0.238 more math and science  courses
- Teacher in an area with higher private school choice: 9.7 percent more likely to be math or science major, with 0.20 more math and science courses.
In addition, those teachers with math or science skills, who are working in metropolitan areas having more traditional choice earn more.
- Teacher in an area with higher Tiebout choice earns 15.6 percent more
- Teacher in an area with higher degree of private school choice earns 14.1 percent more.
These results indicate that schools in settings with greater traditional choice have a higher demand for teachers with particular subject area (math and science) skills.
In addition, it seems that schools – that are subject to Tiebout choice – demand greater effort and independent from their teachers, however it is unclear what the impact of private school choice was.
Meanwhile, some of the observations on the relationships between traditional choice and teacher credentials:
1. No variation in whether teachers in the SASS have a baccalaureate degree
2. A variation whether holding a master’s degree;
3. A variation whether they are certified at all; or certified in the area they actually teach.
It is worth mentioning that many teacher unions’ contracts stipulate wage hikes for master’s degrees and for being certified. Thus, the concern is if traditional school choice stimulates salary increases to be greater than if there is the absence of choice.
Traditional choice seems to have no statistically significant impact on the quantity of master’s degrees and has little, negative impact on the salary increases associated with the master’s degrees. It also has no statistically significant impact on the quantity of certification, or the salary paid to certification.  However, Tiebout choice seems to increase the demand for certified teachers.
An interesting digression is that schools with higher school choice find it harder to hold on to teachers having math or science (or certain) skills.
Overall, it appears that traditional forms of school choice raise demand of schools for teachers who attended selective colleges, have math and science skills, subject area proficiency, and so on. However, traditional forms of choice do not seem to boost schools’ demand for teachers holding master’s degrees or teaching certifications.

VI. Results Comparing Charter, Public and Private Teachers

One finding suggests that charter schools demand more teachers who are alumni of colleges that are at least “competitive plus” and/or majored in a subject area, specifically math or science – as they have higher share of such teachers and provide higher salary by a certain percentage.
In addition the disparity between the charter and public school teachers is greatly statistically significant. For instance, public sector and charter school teachers are paid 0.05 percent less and 4.9 percent more, respectively, for every extra instructional hour they work. This implies that charter schools demand teachers who are eager to provide extra lecture time. Surprisingly, teachers in all sectors work for roughly similar non-instructional hours per week.
On the other hand, public schools appear to have a higher proportion of teachers with master’s degrees in comparison to charter and private schools. Also, public schools seem to pay more to such teachers. However, it is uncertain what the salary premium is for certifications, even though close to 100 percent, 87.4 percent and 65.2 percent of public, charter and private schools teacher, respectively, are certified. In general, public schools show a higher demand for degrees and certification when compared to charter and private schools.
Meanwhile, with regards to the composition effects, for the three types of district it is difficult to find any difference in the pattern – let alone determine a pattern that would back up the concept of composition effects. If there are composition effects, for example, if charter schools disproportionately admit high effort teachers, it is most likely that teacher attendance rate drops in district having huge charter school incursions, however, this is not the case (in any type of district).
All in all, there do not seem to have composition effects in the districts in which they are expected to be found (if they existed).

VII. Other Differences Between Charter, Public and Private Teachers

Another finding indicates that the reason that charter school teachers hold teaching experience of roughly 10 years, in contrast to public and private school teachers with roughly 15 years of experience, is that they have experience in other occupations.
In addition, teachers for all sectors are somewhat equally likely to claim that they plan to carry on teaching.  This is surprising given it is expected that charter school teachers have higher likelihood of not continuing teaching, given that they are younger, usually on their first job, and testing a new type of school; while it is not likely for veteran public school teachers to act like teachers trying out different schools.
Findings on charter school teachers:
- The average charter school teachers earn 8.2 percent below the average public school teacher, but 50 percent above the average private school teacher.
- They are also likely to receive extra pay as a bonus for extra work than public school teachers.
- They have more required hours per week on top of their greater “additional” hours.
- (And private school teachers) are somewhat more likely to assign homework (than public school teachers) in the previous week.
- It is important to mention that many administrators stated in the survey that they had merely implemented the local school district’s wage scale when they began their charter school.
- They believe that they have the most influence over school policy, even though they consider themselves to have roughly the same control over class room decision as private school teacher. (Public school teachers think they have lesser influence on school policy and control over class room decision, in comparison to charter and private school teachers).

VIII. Conclusions

The result of the study indicates that school choice could alter the teaching profession by:
- Increasing the demand for teachers having high quality college schooling, 
- Increasing the demand for teachers with subject area, specifically math and science, proficiency.
- Increasing the demand for teachers providing extra effort and
- Decreasing the demand for certification.
All in all, the finding suggests that school choice would produce a more high-powered incentive environment within the field of teaching – as teachers would be required to hold higher human capital levels and greater effort in exchange for higher marginal salaries for such attributes. Given increased school choice, less motivated teachers might face smaller salary hikes than some of their peers – thus those teachers have a higher likelihood of leaving the teaching profession much early.


Source:
Caroline M. Hoxby, “Would School Choice Change the Teaching Profession.” Journal of Human Resources, Vol. 37, No. 4, (2002), pp. 846-891.


[1] School and Staffing Survey

0 comments:

Post a Comment