At the ASI. Inflation, price deflators and educational productivity.
Timmy Elsewhere
4 responses
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The interesting point here would surely be private schools. If private school teacher salaries have risen, then that can only be because their productivity has risen that much, otherwise it wouldn’t be in the interest of the school to pay them. This in turn presumably reflects the fact that fees have risen so much, which again must be because productivity has risen so much otherwise parents would pay them.
So for the state sector, it all depends on what % of the private schools productivity gains have occurred in the state sector – I guess you could look at exam results. -
The private sector is supply limited – try asking a council planning department for permission to build a new private school. So an increasing demand is chasing a scarce resource.
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But they still wouldn’t employ a teacher whose marginal productivity was below their pay, would they?
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You are right Matthew but a teachers pay is not related to exam results. I suspect productivity has not improved, probably even declined, in the last 100 years. Salaries are based on how much parents are willing to pay for their services.
Increasing demand and limited supply, with a dash of Baumol’s cost disease, results in increasing pay.
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