ERIC Number: EJ902829
Record Type: Journal
Publication Date: 2006
Abstractor: As Provided
Reference Count: 0
Comparable Wages, Inflation, and School Finance Equity
Taylor, Lori L.
Education Finance and Policy, v1 n3 p349-371 Sum 2006
A Comparable Wage Index (CWI) is an attractive mechanism for measuring geographic variations in the cost of education. A CWI measures uncontrollable variations in educator pay by observing systematic variations in the earnings of comparable workers who are not educators. Together, the 2000 census and the Occupational Employment Statistics survey support the construction of just such an index. The resulting panel of index values measures wage levels in all parts of the United States from 1997 through 2004 and reveals substantial variation in purchasing power both across school districts and across time. Such inequalities undermine the equity and adequacy goals of school finance formulas. If states were successfully directing additional resources to school districts in high-cost environments, then measured inequality within states should fall when differences in purchasing power are taken into account. Instead, cost adjustment widens the spending gap in all but a handful of states.
Descriptors: Wages, School Districts, Employment Statistics, Educational Equity (Finance), School Personnel, Educational Finance, Funding Formulas, Resource Allocation, School Support, Financial Policy, Educational Policy, Cost Indexes, Costs, Geographic Regions, Regional Characteristics, Place of Residence, Economic Climate, Comparative Analysis, Measurement Techniques
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: Elementary Secondary Education
Authoring Institution: N/A
IES Cited: ED491640