Pennsylvania's Teachers Are Undercompensated--and New Pension Legislation Will Cut Their Compensation Even More: Undercompensation Is Likely a Factor in Pennsylvania's Growing Teacher Shortage

In light of the Pennsylvania's most recent pension cuts and the challenges the state faces in attracting and retaining qualified teachers, this report asks two primary questions in this study: (1) How does teacher pay compare with the pay of other comparable workers in Pennsylvania--that is, are Pennsylvania public school teachers underpaid (which could help explain the teacher shortage) or overpaid (which might justify the pension cuts); and (2) How will teacher compensation change under Act 5 beginning in 2019? The report further breaks down the compensation data to answer these two questions as well: (1) How does the teacher pay penalty vary by gender; and (2) how does gender and racial/ethnic pay equity among teachers compare with pay equity among other workers? The report also examines whether union membership and collective bargaining has any effect on teacher compensation. This study follows standard practice by focusing on full-time, full-year employees who work at least 35 hours per week and at least 39 weeks per year, a group that represents 80 percent of Pennsylvania's wage earners, according to the American Community Survey. This study makes it clear that Pennsylvania public school teachers face a significant pay penalty. These results are consistent with other research on teacher pay. When researchers looked at overall compensation among Pennsylvania public school teachers, it is apparent that better health and pension benefits only partly compensate for lower salaries. This increase in the teacher compensation penalty is likely to accelerate shortages that are currently being experienced in certain communities and subject areas, disproportionately affecting certain demographic groups. School districts need to address these compensation penalties as they confront shortages of qualified and motivated personnel.