Teachers' Hourly Compensation Doubles Up Private-Sector Average

By: Kenric Ward | Posted: December 23, 2011 3:55 AM
Primary Education TeacherCredit: Dmitriy Shironosov - Shutterstock
Two surprising new reports show that hourly pay and benefits for public-school teachers are higher than the compensation received by other government employees or similarly qualified private-sector workers.

Teachers enjoy greater average hourly compensation in wages and benefits than any other group of state and local government workers, according to the Bureau of Labor Statistics.

The BLS also said teachers get more than twice as much in average hourly wages and benefits as workers in private industry.

Public primary, secondary and special education teachers are paid an average of $39.69 in wages and $16.90 in benefits, BLS reported. That combined $56.59 is double the $28.24 in average hourly wages and benefits paid to workers in private industry.

State and local government workers took in an average of $40.76 per hour in combined compensation.

No category of state or local government worker earned more in average hourly compensation than public-school teachers, though some specific job titles within those broader classifications carried more lucrative payouts.

The BLS determines average hourly wages and benefits by surveying employers. It defines the number of hours a teacher works by the number of hours the instructor is required to be at school.

Because teachers generally work fewer than 200 days per year, their hourly rate of compensation appears inflated.

For example, BLS determined that public-school teachers worked an average of 1,405 hours in a year while government employees worked an average of 1,823 hours.

For each hour at work, according to BLS, the average American public school teacher is paid $4.78 in retirement and savings benefits alone, compared with just $1.02 for the average private-sector worker.

Andrew Biggs, resident scholar at the American Enterprise Institute, said, "Teachers will push back that the [BLS] figures are based on their ‘contract hours’ rather than the actual hours they work, including grading papers at home, etc. These are longer than their official hours, but not that much longer.

"Teachers self-report that they work around 43 hours per week, and a different BLS study that was designed to catch work at home concluded that teachers typically work around 40 hours a week.

"This difference will make them seem a little less well-paid relative to other state/local workers, but I doubt it’s enough to change the overall conclusions," Biggs said.

Jay Greene, an education researcher at the University of Arkansas, reported previously that full-time public school teachers work on average 36.5 hours per week versus 39.4 hours for white-collar workers (excluding sales) and 39 hours for professional specialty and technical workers.

Private school teachers work 38.3 hours per week, Greene's research found.

A separate report co-authored by Biggs and Jason Richwine of the Heritage Foundation delved deeper into the compensation gap.

Their study, "Assessing the Compensation of Public-School Teachers," released last month, stated:

"Comparing teacher salaries to the salaries of similarly educated and experienced private-sector workers, and then adding the value of employer contributions toward fringe benefits, would indicate that public-school teachers are undercompensated. However, comparing teachers to nonteachers presents special challenges not accounted for in the existing literature."

For starters, Biggs and Richwine found that formal educational attainment, such as a degree acquired or years of education completed, "is not a good proxy for the earnings potential of school teachers."

"Public-school teachers earn less in wages on average than nonteachers with the same level of education, but teacher skills generally lag behind those of other workers with similar 'paper' qualifications," they asserted.

Biggs and Richwine found that:

Comments (12)

RepublicanConscience
7:43AM DEC 28TH 2011
What part of DUH don't you understand. Education is a cottage industry serving the it's members, not the students. The students are only a vehicle to steer money from the public trough to the members running the education. If market principles were adopted the gap would narrow almost immediately.

Anything paid for by 3rd parties or subsidies diminishes the quality and increases costs, basic Economics 101. Why can they get so much more than the private sector? Because they are paid by distant taxpayers without a name, who have no control over the costs. Let's return the United States education back to it's great, best in the world status prior to Jimmy Carter's establishment of the Department of Education. The DOE does for education what Typhoid Mary did for the Red Cross.
BMS
8:46AM DEC 27TH 2011
"Most teachers accrue lucrative retiree health benefits as they work". Not anywhere I know in Florida. When I retired, I opted to stay with the group plan. I had to pay the full freight. The only benefit I received health wise was the HIS from the state. Even with that the premium chewed up more than 1/3 of my retirement check. I am not complaining just stting my situation.
aboode
3:47AM DEC 27TH 2011
I benefited a lot from reading the article and the finding of a lot of benefits

Thank you for your essay
Jim
1:14AM DEC 27TH 2011
Stop complaining about teacher salaries. Get a teaching degree and you too can enjoy all the marvelous benefits. Plus you can spend some of that salary on supplies that the schools won't. Plus the joy of trying to motivate up to 150 students in whatever subject you are teaching.
Robert Lloyd
10:43AM DEC 24TH 2011
We have become a third world nation where the best jobs are with the government. That is a total 180 degrees from where we were when I was growing up.

I do not believe any tax supported individuals are owed 'benefits' when so many in the private sector (what remains of a private sector) now are without benefits.

Government is a cancer and the #1 threat to prosperity and individual freedom. Now, decades into the socialist state, there is no remedy except for armed rebellion I believe. We can all sit around and rant 'we're gonna take America back' and nothing will change except for more government socialism and TV showing episodes of 'Government Workers To The Rescue!'
Groscoe
2:58PM DEC 23RD 2011
Remember a only a few years back when the County Commission was pushing to find ways to help the poor school teachers, firemen and police?

As it turns out they on average make more than a private sector worker......what is wrong with that picture?
David 0
1:53PM DEC 23RD 2011
What are the jobs of the private sector workers "similarly educated and experienced"? Are they file clerks? Receptionists? What a bogus study, or an incomplete article. And teachers are NOT hourly workers, they are salaried employees, required to work through lunch hours, take up money for tickets at sporting events, and update their credentials every year.
Groscoe
2:59PM DEC 23RD 2011
Sounds like there must be a teacher in the house
Jim B.
11:20AM DEC 23RD 2011
Mr. Ward,
While I agree with your position I now fear for your safety. You have opened the gates of hell in which the union bosses reside. Thou shalt not speak truth of the holly grail of education.
vj
11:06AM DEC 23RD 2011
I can't resist - your commenter wawoo rails on Republicans and says join a union. Maybe he should watch "The Cartel" which is about how unions have just about destroyed public schools in New Jersey (which, unlike Florida, is NOT a right to work state). You can view it free on Hulu.com .

Or, you can read this Heritage Foundation report "Assessing the Compensation of Public School Teachers" (mentioned in the article), which describes several added factors indicating teachers are overpaid, and concludes:

"We conclude that public-school-teacher salaries are comparable to those paid to similarly skilled private-sector workers, but that more generous fringe benefits for public-school teachers, including greater job security, make total compensation 52 percent greater than fair market levels, equivalent to more than $120 billion overcharged to taxpayers each year."

Finally, it appears most teacher union negotiations for salaries and benefit increases are behind closed doors with the School District Boards, rather than being presented and decided in public forums using objective, data driven research. Until that happens, any claim for teachers being underpaid isn't credible with me.
wawoo
11:38AM DEC 23RD 2011
Heritage, no intrinsic bias or a chance of structuring the reseach and the results so that confirmation bias would be invovled. Nosiree bob, just the facts-not. Right To Work is another conservative Orwellian construct. It means right to be in a condition of indentured servitude, being able to be fired for no reason or any reason and especially if you seek to assert your rights to organize or have a safe workplace.
vj
11:01AM DEC 23RD 2011
What is the name and source of these BLS studies? I have not been able to find them on the BLS website. I would suggest you establish an editorial policy to always publish the source link for quoted "studies" and reports.