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ERIC Number: ED491640
Record Type: Non-Journal
Publication Date: 2006-May
Reference Count: 39
A Comparable Wage Approach to Geographic Cost Adjustment. Research and Development Report. NCES-2006-321
Taylor, Lori L.; Fowler, William J. Jr.
National Center for Education Statistics
Geographic cost differences present many complications when researchers attempt to make systematic comparisons of educational resources, and failure to address such differences can undermine the equity and adequacy goals of school finance formulas. Therefore, there is considerable interest in developing measures of the cost of education that can facilitate such comparisons and possibly may be used to adjust school finance formulas in some states. Geographic cost adjustment data for states, metropolitan areas, and school districts are frequently and widely requested by the public and school finance research community. In this report, NCES extends the analysis of comparable wages to the labor market level using a Comparable Wage Index (CWI). The basic premise of a CWI is that all types of workers--including teachers--demand higher wages in areas with a higher cost of living. This report develops a CWI by combining baseline estimates from the 2000 U.S. census with annual data from the Bureau of Labor Statistics (BLS). The Occupational Employment Statistics (OES) survey is a BLS database that contains average annual earnings by occupation for states and metropolitan areas from about 400,000 nonfarm businesses, and is available for years 1997 to 2003. Combining the census with the OES makes it possible to have yearly CWI estimates for states and local labor markets for each year after 1997. OES data are available each May and permit the construction of an up-to-date, annual CWI. Appended are: (1) Extending the Baseline With the OES; and (2) Comparisons With Other Cost Adjustment Strategies. (Contains 8 tables, 4 figures, and 21 endnotes.) [This report also produced by Bush School of Government and Public Service, Texas A&M University.]
Descriptors: Wages, Labor Market, Differences, Regional Characteristics, College Graduates, Costs, Teacher Salaries, School Districts
ED Pubs, P.O. Box 1398, Jessup, MD 20794-1398. Tel: 877-433-7827 (Toll Free); Web site: http://www.edpubs.org.
Publication Type: Numerical/Quantitative Data; Reports - Research
Education Level: N/A
Audience: Administrators; Policymakers
Authoring Institution: National Center for Education Statistics (ED), Washington, DC.
IES Funded: Yes
IES Publication: http://ies.ed.gov/pubsearch/pubsinfo.asp?pubid=2006321