The Effects of School Finance Reforms on Teacher Turnover: Evidence From National Data

• In Event: Waves of Cash: The Consequences of Supplements, Finance Reforms, and Shortfalls

Abstract

In this paper, we seek to connect the disparate literatures pertaining to teacher turnover, school finance reforms (SFRs), and teacher union strength, including an examination of potentially important heterogeneity in education contexts. Our analyses indicate SFRs increased teacher salaries, with gains of approximately $3,000 concentrated for teachers in high poverty and minority school contexts. We estimate null to small positive effects for teachers in other school contexts (low poverty, low minority, STEM, special education). Highly experienced teachers may have witnessed gains at the expense of novice teachers. Consistent with prior findings, teacher salary gains were found only in district contexts of high teacher union strength. Despite gains in salary, we find no evidence that SFRs improved rates of teacher turnover.

Authors

• J. Cameron Anglum, Lehigh University

• Michael Crouch, Vanderbilt University

• Tuan D Nguyen, Kansas State University