Welcome to the Profit of Education website. Continuing the conversation begun in the book Profit of Education, we discuss the latest economic evidence on education reform.

Master’s degrees and money

Eric Larsen provides some nice quantitative analysis about why so many teachers earn master’s degrees in “Teacher MA attainment rates, 1970-2000.” First the fact: the fraction of teachers with a master’s more than doubled between 1970 and 2000, the numbers going from 21 to 45 percent. Larsen builds a statistical model that breaks this down into four causes.

  1. 10 percentage points–increases in the MA salary premium.
  2. 6 percentage points–increased age of the teacher corps.
  3. 1 percentage point–all other observable factors
  4. 7 percentage points–remaining unknown factors.

In other words, the big reason teachers earn master’s is the money.

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