Determinants of intrastate variation in teacher salaries

Previous work on understanding the determinants of average teacher salaries has focused on interstate variation. This study addresses determinants of intrastate variation in teacher salaries. Using the model developed by Walden and Newmark, average teacher salaries in North Carolina school districts are related to variation in the local cost-of-living, personal characteristics of teachers, job characteristics of the teaching positions, and local demand factors. A key finding is that, like interstate studies, we find local salaries are related to local cost-of-living measures. Also, after accounting for education and experience characteristics, local teacher salaries are higher in districts with a greater proportion of secondary teachers, in districts with larger average school sizes, and in districts with a greater demand for education. (C) 2001 Elsevier Science Ltd. All rights reserved. JEL classification: J21; J45.