Returns To Seniority Among Public School Teachers

ReUirns to seniority account for a subslantial share of public K-12 expenditures. Over the first ten to 15 years of a career, public school teachers enjoy average wa^e growth al least equivalent to that of other white-coltar workers. ELxplanatians for Ihis structure in terms of human capital or costly monitoring tack theoretical and empirical support. A steeper wageleniire profile reduces tumover. hut it is douhrful that the costs of turnover arc high enough lo make this an optimal use of si-hool resources. We conclude thai the structure of leather pay in public education i\ more consistent with rent-seeking than efficieni conlraiting.