Dan Goldhaber

 

 

Scrambling the Nest Egg: How Well Do Teachers Understand their Pensions and What Do They Think about Alternative Pension Structures?
Working Paper 51
Author(s): Michael DeArmond and Dan Goldhaber

This paper addresses two questions: How well do teachers understand their current pension plans? And, what do they think about alternative plan structures? The data come from administrative records and a 2006 survey of teachers in Washington State. The results suggest Washington’s teachers are fairly knowledgeable about their pensions, though new entrants and mid-career teachers appear to be less knowledgeable than veteran teachers. As for teachers’ preferences for plan structure, the survey suggests that when it comes to investing additional retirement savings, a plurality of teachers favor defined contribution plans which offer more portability and choice, but more risk than traditional defined benefit plans. Perhaps unsurprisingly, all else equal, teachers newer to the profession are more likely than veteran teachers to favor a defined contribution structure.

Published: June 2010 | Download:  Full Text (PDF 629KB)

Teacher Attitudes about Compensation Reform: Implications for Reform Implementation
Working Paper 50
Author(s): Dan Goldhaber, Michael DeArmond, and Scott DeBurgomaster

Reform advocates and policymakers concerned about the quality and distribution of teachers support proposals of alternative compensation for teachers in hard-to-hire subject areas, hard-to-staff schools, and with special knowledge and skills. The successful implementation of such proposals depends in large part on teacher attitudes. The current body of research on teacher attitudes toward compensation reform paints an inconsistent picture of teachers’ views, largely ignoring the influence of individual and workplace characteristics on teacher attitudes. Results from a 2006 survey of teachers in Washington State linked to school and district data confirm earlier findings that teacher opinion about pay reform is not uniform, and further illustrates teacher preferences for different pay structures vary substantially by individual and workplace characteristics. Nearly three quarters of teachers favored higher pay for hard-to-staff schools. In contrast, only 17% favored merit pay. Teachers with a high degree of confidence in their principal were more likely to support merit pay than those with greater sense of trust and respect for their fellow teachers than for their principal. Policymakers interested in implementing new pay systems should carefully assess teacher opinion in determining where (and how) they invest in them.

Published: June 2010 | Download:  Full Text (PDF 768KB)

The research reported here was supported in part by the Institute of Education Sciences, U.S. Department of Education, through Grant R305A060018 to the Urban Institute. The opinions expressed are those of the authors and do not represent views of the Institute of Education Sciences, the U.S. Department of Education, or the Urban Institute.