As the school year approaches, so does the perennial conversation about whether or not American public educators are fairly compensated. Proponents of increased compensation cite the relative pay of teachers, the importance of education, and the psychological demands of teaching. Skeptics point to the profession’s job security, extended summer vacations, generous benefits, and the relatively poor academic performance of K-12 educators compared to other professions.
For both sides, it’s clear that it’s time to radically reassess how we pay teachers in America, but no one is talking about how our current system hurts our nation’s top teachers—and lets lower performers skate by on their coattails.
The current pay structure pays teachers based on their seniority and educational certifications: Decades of service and a master’s or doctoral degree result in salary increases. But as teacher burnout and lackluster student performance are rising concerns across America, it’s worth asking whether this current method truly benefits teachers and students.
On the surface, it’s easy to see how rewards (salary, benefits, bonuses, etc.) divorced from expected results (student learning and outcomes) would demotivate teachers: The teachers who work the hardest and cultivate successful students are not rewarded for all their efforts. Meanwhile, a teacher who puts in minimal effort but stays in the field for years and pursues an additional degree would be financially rewarded.
Certainly, seeing students succeed would be gratifying in and of itself, but isn’t it only fair that the best and hardest-working teachers are also recognized?
This appears to be the sentiment among unions and teachers who share their frustrations with their salaries.
“Fair pay and fair benefits ensure the best and brightest can join and stay in our profession–for that’s what our communities deserve,” proclaims America’s largest teachers union, the National Education Association (NEA), even while opposing merit-based pay.
“I do want to be paid what I’m worth,” said Elaine Hutchison, a teacher profiled by Time Magazine.
Paying teachers what they’re worth doesn’t just mean rewarding the best educators, however, as Claudine “Beanie” Geoghegan, a former public educator, told IW Features.
“I think it’s important that teachers have the pay that they deserve,” she said. “And I don’t mean everybody should get a pay raise because some teachers deserve pay raises and some do not… My four kids have had a lot of teachers over the years, and I’ve worked with a lot of teachers over the years. Some didn’t deserve to make minimum wage—I’m just going to be honest.”
When surveyed, public educators do say they prefer a merit-based pay structure, according to a 2024 working paper from University of Texas economist Andrew C. Johnston.
Looking deeper, studies also indicate that, beyond rewarding hard-working teachers, merit pay also has a positive impact on long-term student outcomes. For instance, after the Dallas Independent School District implemented a merit-based pay system, standardized test scores increased by 16% of a standard deviation in math and 6% in reading.
In another case, when Wisconsin passed Act 10 in 2011, teachers unions no longer had the power to set salaries via collective bargaining. As a result, when the existing union contracts expired, school districts could switch to a merit-based pay schedule.
These merit pay districts saw an improved workforce, superior test scores, and increased “effort exerted by all teachers,” as Barbara Biasi explained in her 2021 research paper. High-quality teachers moved to districts using a merit pay system, while lower-quality teachers moved to districts with a schedule-based pay structure, or dropped out of the public education labor market entirely.
While it’s unknown if the effects would be the same if all districts switched to merit pay, there is research indicating that merit-based pay has effects beyond test scores, such as:
- Higher college attendance rates
- Increased quality of the colleges attended
- Greater future earnings
- Improved participation rates in retirement saving plans
- Reduced teenage pregnancy rates
However, teachers are concerned about the merit evaluation criteria, echoing the NEA’s criticism that student outcomes could be weaponized against teachers, citing concerns about“accuracy, reliability, and validity.” Educators prefer to be evaluated based on several independent factors.
In line with this, the Houston Independent School District has announced that, starting in 2026, it will compensate teachers based on quality of instruction, student academic outcomes, planning and professionalism, and school-wide performance. Properly structured incentives like these also provide teachers with a metric on how to improve their classroom practices—they have a clear guidepost on where their efforts are most needed. It also gives teachers the freedom to choose how they structure the day-to-day of their classrooms, so long as they are working toward the defined metrics.
Perhaps as a result, merit pay may increase teacher welfare, even as much as 20% when combined with other pay structure adjustments.
Certainly, no compensation model is perfect, and every teacher will have his or her own perspective on the pros and cons. But the research bears out the benefits of merit-based pay. And truly, both sides can agree that it’s time to prioritize hardworking educators.
