The Relevance of Teachers' Salaries

Education is often called an important determinant of economic growth. However buying power for teachers is falling in several countries. This could damage the quality of education. This thesis reviews the most important literature regarding teachers’ salaries. According to earlier work raising salary for teachers should lead to better student performance and this research finds that students score better on the PISA test, if the salary for teachers is higher. This could mean that better teachers can be attracted by offering a higher salary. However the PISA test scores may not be a complete measure of the performance of students and because of that and a relatively small dataset more research might be necessary on this topic.