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 degree salaries and master’s degree-ed

Just like the rest of us, teachers respond to financial incentives. Other things count as well, of course, but financial incentives do matter. I thought I’d illustrate this with a graphical factoid. (I say “factoid” because there’s nothing terribly sophisticated in my statistical analysis.)  The graph shows the relation between the fraction of teachers in a state who have gotten master’s degrees and the extra pay that comes with a master’s.

The red line indicates that a 10 percentage point increase in the pay premium for a master’s is associated with a six-and-a-half percentage point increase in the fraction of teachers who get a master’s.

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2 Responses to Master’s degree salaries and master’s degree-ed

  1. Byron says:

    I guess once you’ve dropped IL and OR the relationship will be even more dramatic.

    That brings up a question: are there exogenous factors that make OR and IL look “odd”?

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