Starting in July 2012, Indiana requires local salary scales to be based on a combination of factors. Years of teacher experience and content area degrees beyond the requirements for employment may not account for more than 33 percent of the calculation. The remaining calculation is based on results of the teacher evaluation.
For evidence that degree status does not increase teacher effectiveness and should therefore not be automatically rewarded in teacher salary schedules, see the following:
C. Clotfelter, H. Ladd and J. Vigdor, "How and Why do Teacher Credentials Matter for Student Achievement?" National Bureau of Economic Research. Working Paper No. 12828 (2007); S. Rivkin, E. Hanushek, and J. Kain, "Teachers, Schools, and Academic Achievement." Econometrica (2005); R. Ehrenberg and D. Brewer, "Do School and Teacher Characteristics Matter? Evidence from High School and Beyond," Economics of Education Review, 1994; 14: 1-23. (Ehrenberg and Brewer found that an increase in the percentage of teachers with master's degrees was associated with lower gains among white students but higher gains among black students.); R. Murnane, The Impact of School Resources on the Learning of Inner City Children, (Cambridge, MA: Harper Collins, 1975); H. Kiesling, "Assignment Practices and the Relationship of Instructional Time to the Reading Performance of Elementary School Children," Economics of Education Review, 1984; 3(4): 341-50.B. Rowan, et al., "What Large-scale, Survey Research Tells Us About the Teacher Effects on Student Achievement: Insights from the Prospects Study of Elementary Schools," Teachers College Record (2002); 104(8): 1525-67.R. Ferguson, "Paying for Public Education: New Evidence on How and Why Money Matters," Harvard Journal on Legislation, 1991; 28: 465-98.D. Goldhaber and D. Brewer, "Evaluating the Effect of Teacher Degree Level on Educational Performance," Developments in School Finance, ed. W. Fowler, U.S. Department of Education, National Center for Education Statistics, 1997, 199-210.
For evidence that experience does not directly correlate with teacher effectiveness, and therefore should not be the sole determinate of the highest steps on a pay scale, see the following:
J. King Rice "The Impact of Teacher Experience: Examining the Evidence and Policy Implications." CALDER: Urban Institute (2010); S. Rivkin, E. Hanushek, and J. Kain, "Teachers, Schools, and Academic Achievement." Econometrica (2005); C. Clotfelter, H. Ladd, and J. Vigdor, "How and Why Do Teacher Credentials Matter for Student Achievement?" National Bureau of Economic Research (2007); Kukla-Acevedo, "Do Teacher Characteristics Matter? New Results on the Effects of Teacher Preparation on Student Achievement." Economics of Education Review (2009); E. Hanushek and S. Rivkin, "How to Improve the Supply of High Quality Teachers." Brookings Institute (2004).
For information about alternative compensation for teachers, see the following:
Teaching Commission and USC California Policy Institute, "Understanding Alternative Teacher Compensation," USC California Policy Institute, 2005.Jennifer Azordegan, et al., "Diversifying Teacher Compensation: The Teaching Commission and Education Commission of the States," ECS (2005); Minnesota Department of Education, "Quality Compensation for Teacher (Q Comp) Contains Five Basic Components."