A paper from the Centre for Market and Public Organisation at the University of Bristol investigates the relationship between regulated teacher salaries and school performance and finds that regulated wages could be having a negative impact on pupils’ achievement.
The study analysed school performance data from around 3,000 state secondary schools in England and matched it with data on local wages. They identified a loss of approximately one GCSE point per pupil – the equivalent of dropping one GCSE grade in one subject per pupil – when average outside wages increased by 10 per cent. The study accounted for variances in schools’ intake to allow for different levels of difficulty in educating pupils of varying backgrounds.
Source: Does wage regulation harm kids? Evidence from English schools (2012), Centre for Market and Public Organisation