Cross-Regional Differences in Solving the Teacher Pay Rise Problem

Pavel Derkachev - Candidate of Sciences in Economics, Leading Research Fellow, Center for Applied Economic Research, Institute of Education, National Research University-Higher School of Economics. Address: 20 Myasnitskaya str., Moscow, 101000, Russian Federation. E-mail: pderkachev@hse.ruThe paper provides an overview of studies dedicated to correlations between school teacher salaries and regional economics and to the local factors affecting the size of teacher salaries. The paper describes the basic teacher pay indicators in the regions: absolute salary, teacher pay level as compared to the average regional salary, ratio of salary to the average consumer bsket and to the per capita gross regional product. Based on the calculations performed using open databases of governmental authorities, a classification of regions by teacher pay levels was developed, providing seven clusters of regions. For each of the clusters, we have elaborated recommendations on teacher remuneration, identifying typical risks and challenges. These recommendations are designed to improve efficiency of activities that are part of the education policy by way of differentiating federal assistance. The conclusion is that, apart from the index of teacher pay level as compared to the average regional salary, which is the benchmark of governmental programs, one should also consider the ratios of salary to the average consumer basket and to the per capita gross regional product.