Richwine and Biggs found that when public school teachers and private sector workers are compared objectively on the basis of cognitive skills -- rather than years of service or educational attainment -- the educators enjoy higher compensation -- contrary to the claims of union officials in public debate and in negotiations with school boards.
This is seen most dramatically when workers switch from non-teaching jobs to teaching jobs. Such a move typically results in a wage increase of approximately nine percent. "Teachers who change to non-teaching jobs, on the other hand, see their wages decrease by roughly 3 percent. This is the opposite of what one would expect if teachers were underpaid," Richwine and Biggs said.
The biggest factor in the compensation advantage enjoyed by public school teachers is not wages, however, but rather fringe benefits, which typically are substantially more generous than those paid to private sector workers in cognitively comparable positions.
"More generous fringe benefits for public-school teachers, including greater job security, make total compensation 52 percent greater than fair market levels, equivalent to more than $120 billion overcharged to taxpayers each year. Teacher compensation could therefore be reduced with only minor effects on recruitment and retention," Richwine and Biggs conclude. (emphasis mine)
The original study is here.