Raising Salaries, Impacting Economies: The Economic Impact of Increasing Minimum Teacher Salaries in Rural Districts

• In Event: Saturday Roundtable Session 11:25 am
  In Roundtable Session: Policy Futures for K–12 and Higher Education: Advancing Policy and Broadening Participation (Table 34)

Abstract

Teachers are crucial contributors to rural economies, especially in communities where population loss puts economic vitality in jeopardy. This study analyzes Indiana’s new (2021) $40,000 minimum teacher salary requirement (Ind. Code §20-28-9-26) to determine 1) how rural district leaders implemented the policy and 2) the economic impact of these budget decisions on the local economy. I conduct mixed methods case studies in 11 rural districts experiencing different demographic and financial situations. Interviews with superintendents illuminate how budget decisions vary across districts despite the seemingly uniform policy, and economic impact analyses estimate the impact of those salary changes on the local economy. I aim to understand how local implementation of a statewide policy leads to varying economic impacts on local communities.

Author

• Kristie LeBeau, Harvard University