Teacher Compensation and Collective Bargaining

This chapter is a preprint of a book chapter. For the final version, please see the book published by Elsevier.While compensation accounts for roughly 90 percent of K-12 instructional costs, there is little evidence of rational design in these systems. This chapter reviews the nature of teacher compensation systems in developed economies and research on their performance effects. Since these compensation schemes typically arise out of collective negotiations, this chapter also surveys the smaller literature on the effect of teacher collective bargaining on earnings and school outcomes