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URBAN INSTITUTE
The Economic Value of Higher Teacher Quality
Eric HanusHEk
w o r k i n g p a p e r 56 • d e c e m b e r 2010
The Economic Value of Higher Teacher Quality
Contents
Acknowledgements ..................................................................................................................................................................ii
Abstract........................................................................................................................................................................................iii
Introduction.................................................................................................................................................................................1
The Central Importance of Teachers ..................................................................................................................................3
Problems with Current Teacher Policies...........................................................................................................................6
Current Certification Policies...................................................................................................................................................6
Current Salary Policies ..............................................................................................................................................................8
What is the Economic Value of Quality Teachers?..................................................................................................... 12
The Demand Side Based on Expected Student Earnings............................................................................................. 13
The Demand Side Based on Aggregate Economic Growth......................................................................................... 21
Costs and the Timing of Benefits ...................................................................................................................................... 23
Policy Conclusions.................................................................................................................................................................. 26
References................................................................................................................................................................................. 29
Tables.......................................................................................................................................................................................... 35
Figures......................................................................................................................................................................................... 38
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