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Retaining Effective Teachers Policy

Differential Pay

The state should support differential pay for effective teaching in shortage and high-needs areas.

Best practices

Georgia supports differential pay by which teachers can earn additional compensation by teaching certain subjects. The state is especially commended for its new compensation strategy for math and science teachers, which moves teachers along the salary schedule rather than just providing a bonus or stipend. The state also supports differential pay initiatives to link compensation more closely with district needs and to achieve a more equitable distribution of teachers. Georgia's efforts to provide incentives for National Board Certification teachers to work in high-need schools are also noteworthy.

Suggested Citation:
National Council on Teacher Quality. (2011). Differential Pay National Results. State Teacher Policy Database. [Data set].
Retrieved from: https://www.nctq.org/yearbook/national/Differential-Pay-9
Best practice 1

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Meets goal 12

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Performance Pay
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Delivering Well Prepared Teachers
Expanding the Pool of Teachers
Identifying Effective Teachers
Retaining Effective Teachers
Exiting Ineffective Teachers
Research rationale

Two recent studies emphasize the need for differential pay. In "Teacher Quality and Teacher Mobility", L. Feng and T. Sass find that high performing teachers tend to transfer to schools with a large proportion of other high performing teachers and students, while low performing teachers cluster in bottom quartile schools (CALDER: Urban Institute 2011).  Another study from T. Sass et al found that the least effective teachers in high-poverty schools were considerably less effective than the least effective teachers in low-poverty schools.

Charles Clotfelter, et al., "Would Higher Salaries Keep Teachers in High-Poverty Schools? Evidence from a Policy Intervention in North Carolina," Sanford Institute of Public Policy, Duke University, May 16, 2006 at:
http://papers.nber.org/papers/w12285.

Julie Kowal, et al., "Financial Incentives for Hard to Staff Positions," Center for American Progress, November 2008.

A study by researchers at Rand found that higher pay lowered attrition, and the effect was stronger in high-needs school districts. Every $1,000 increase was estimated to decrease attrition by more than 6 percent. See S.N. Kirby, et al., "Supply and Demand of Minority Teachers in Texas: Problems and Prospects," Educational Evaluation and Policy Analysis, 1999; 21(1): 47-66 at: http://epa.sagepub.com/cgi/content/abstract/21/1/47

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