Does school pay?

Click to enlarge

People are by far the most important input when building quality education. So it is little surprise that teachers’ salaries represent the largest single cost item in the labour intensive education system. Salaries and working conditions play an important role in attracting, motivating and retaining skilled teachers. Teachers are the backbone of the education sector which is a crucial determinant of productivity and growth.

Are teachers’ pay levels up to the task? The annual statutory gross basic wages of lower secondary teachers with 15 years of experience range from less than US$15,000 in Estonia, the Slovak Republic and Hungary to over $60,000 in Luxembourg, Germany and the Netherlands in 2011. The average for OECD member countries reaches nearly $40,000.

Becoming a teacher requires a tertiary degree. How do teachers’ salaries compare with those of their peers who have invested roughly the same time, money and effort to gain a comparable level of education?

In almost all OECD countries, teachers’ gross wages are lower than the average annual gross wages for employees with a similar level of education. In Spain, Korea, Luxembourg and Portugal, teachers earn more. In New Zealand, Canada, Germany and Finland, teachers’ statutory salaries are almost equal to the average earnings of tertiary-educated workers. However, in the Slovak Republic, Iceland, Italy and Austria, teachers’ salaries are considerably below the average earnings of workers with a tertiary degree.

See www.oecd.org/education/ and http://www.oecd.org/education/school/34990905.pdf

©OECD Observer No 297, Q4 2013




Economic data

E-Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Editor's choice

  • Base Erosion and Profit Shifting (BEPS)
  • Base Erosion and Profit Shifting: "Currently tax planning results in locating the profits in tax havens where nothing is happening. BEPS is rewriting the international tax rules to realign the location of the profits and the real activity."
  • Try our latest OECD Observer crossword!
  • OECD Yearbook 2014
    Catherine L. Mann has been appointed as the new OECD Chief Economist. She replaces Pier Carlo Padoan, who became Italy’s minister of economy and finance in February 2014, and will take up her post in October. Ms Mann will be the second woman in the OECD's 50-year history to be chief economist.Click for bio.
  • Climate change video
  • Climate change: Reduce greenhouse emissions, strengthen climate resilience and mobilise finance, policies and willpower for a meaningful global agreement in Paris in 2015: these are the issues as government leaders, business heads and civil society representatives prepare for UN climate talks (COP20) in Lima, Peru, in December. The OECD is in the vanguard of efforts to fight climate change, and is providing facts, data and guidance to steer these discussions. Simon Upton, Director of Environment, explains the key issues.
  • Better Life Index
    How do you measure a Better Life? The OECD has launched a new interactive infographic where visitors can explore the priorities of people worldwide. Be a part of it. Create and share your Better Life Index.
  • Tim Harcourt Video
  • G20 and Australia: Economist Tim Harcourt speaks to the BBC about how Australia has gone from "Down Under to Down Wonder".
  • OECD Week 2014 : Resilient economies for inclusive societies. Forum 2014 was organised around three cross-cutting themes: Inclusive Growth, Jobs, and Trust. Watch the video. And check out our 2014 yearbook by clicking here.

Most Popular Articles

Subscribe Now

<b>Subscribe now!</b>

To receive your exclusive print editions delivered to you directly


Online edition
Previous editions

Poll

Is deflation a major risk in OECD economies?

Yes
No
Don't know

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2014