The teacher compensation penalty grew to 11.1% in 2017: Trends in the teacher compensation penalty and its components, 1994–2017
|Compensation to W-2 wage ratio:||Teachers*|
|Professionals||Teachers*||Wage penalty||Benefits advantage**||Compensation penalty|
|1994–2004||n.a||n.a||-9.6 ppt.||0.1 ppt.||-9.5 ppt.|
|2004–2007||0.010||0.035||-1.6 ppt.||1.7 ppt.||0.1 ppt.|
|2007–2010||0.014||0.019||0.9 ppt.||1.0 ppt.||1.9 ppt.|
|2010–2017||0.027||0.086||-6.6 ppt.||2.7 ppt.||-3.9 ppt.|
|2004–2017||0.051||0.140||-7.3 ppt.||5.4 ppt.||-1.9 ppt.|
|2015–2017||0.005||0.026||-1.7 ppt||1.2 ppt.||-0.5 ppt.|
|1994–2017||n.a.||n.a.||-16.9 ppt.||5.5 ppt.||-11.4 ppt.|
* Teachers are elementary, middle, and secondary public school teachers (compensation data do not include kindergarten teachers).
** The benefit advantage is the degree to which higher benefits offset the wage penalty.
*** Because of discontinuities in occupational categories for both teachers and professionals, 1994 data are not comparable (see Allegretto, Corcoran, and Mishel 2008, Chapter 4).
Source: Authors’ analysis of Current Population Survey Outgoing Rotation Group data and Bureau of Labor Statistics Employer Costs for Employee Compensation data