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*** | n.a. | n.a. | -1.8% | 2.1% | 0.3% | |
| 2004 | 1.230 | 1.260 | -11.4% | 2.2% | -9.2% | |
| 2007 | 1.239 | 1.295 | -13.0% | 3.9% | -9.1% | |
| 2010 | 1.253 | 1.314 | -12.1% | 4.9% | -7.2% | |
| 2015 | 1.275 | 1.375 | -17.0% | 6.5% | -10.5% | |
| 2017 | 1.280 | 1.401 | -18.7% | 7.6% | -11.1% | |
| Percentage-point change | ||||||
| 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