Public school teachers’ unions are unhappy with this level of pay, of course. With declining school budgets, the union bosses argue that teacher morale is sinking. Yet, despite decades of research indicating the contrary, the union bosses continue to believe that raising teach pay improves teacher satisfaction.
The Texas Public Policy Foundation doesn’t buy the bosses’ correlation.
For example, the Lone Star state employs the largest number of teachers in the U.S., with 324k+ K-12 teachers in the state’s public school system. Private schools employ ~23.4k additional teachers.
Want to raise that ~$49k salary?
Forget raising property taxes. Just get rid of the monopsony.
The “monopsony”—a market where the buyer rather than the seller controls the market.
Testifying at a Texas school finance trial, a Duke University professor, Dr. Jacob Vidgo, said:
In a market that's marked by monopsony power, the standard prediction for
economics is that fewer teachers will be hired overall and their wages will be
How would that happen?
Teachers' salaries would rise with competition—school choice—as more purchasers would enter the education market. With little competition for their services, there’s a downward pressure exerted upon teachers’ wages. With competition, teachers’ pay would rise as the demand for good teachers increases, estimated to be about $12k in Houston Public Schools.
End the monopsony, for the sake of the students!
Let the discussion begin…
To read the Texas Public Policy Foundation report, click on the following link:
"Teachers Win: A Case for School Choice."