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    Study of Hawaiis Compensation

    System

    By

    Augenblick,PalaichandAssociates

    with

    ChrisStoddard

    November2014

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    Mr. Wilbert HolckExecutive DirectorHawaii State Teachers Association1200 Ala Kapuna St.Honolulu, Hawaii 96819

    Ms. Kathryn MatayoshiSuperintendentHawaii State Department of Education1390 Miller StreetHonolulu, Hawaii 96813

    Mr.Holck

    and

    Ms.

    Matayoshi,

    ThisreportservesastheculminationoftheworkAugenblick,PalaichandAssociates(APA)conducted

    fortheHawaiiDepartmentofEducationtoexamineHawaiisteachercompensationsystem.Followinga

    competitiveRequestforProposalprocess,APAwasawardedtheproject.Thescopeofworkcalledfora

    fullinvestigationofthestatescompensationsystem,includinganexaminationofthestructureofthe

    statessalaryschedule,acomparisonofsalarylevelstothoseofcomparisondistricts,acomparable

    wagestudy,andasetofrecommendationsforpossiblechangestothestatesteachercompensation

    system.

    Thereport

    has

    six

    chapters.

    Chapter

    one

    provides

    abrief

    background

    on

    the

    project

    and

    an

    introduction

    tothework.ChaptertwoexaminestheflowofteachersintoandoutofHawaiisteacherworkforce.

    Chaptertwobeginswithanexaminationoftrenddata,andthenrunsaregressionanalysistoshowhow

    differentvariablesinfluenceteacherretention.Chapterthreeisacomparablewagestudy.Itcompares

    teachersalariestothoseofotherprofessionals,bothinHawaiiandacrossthecountry.Chapterfour

    examinesthestructureofHawaiissalaryscheduleandcomparesittosalaryschedulesin12comparison

    districts.Hawaiissalarylevelsarethencomparedtothecomparisondistricts.Thecomparisonsexamine

    rawsalaries,salariesadjustedforworkload,andsalariesadjustedforgeographiccostdifferences.

    ChapterfiveexaminesHawaiisbenefitstructure,includinginsurancecoverageandretirementplans.

    Chapterfivealsoprovidessomecomparisonstootherdistricts.Chaptersixusestheanalysisdescribedin

    theearlier

    chapters

    to

    recommend

    alist

    of

    possible

    changes

    to

    Hawaiis

    compensation

    system.

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    StudyofHawaiisCompensationSystem

    Recommendationsincludeloweringthenumberofclassesinthesalaryschedule,raisingthenumberof

    stepsinthesalaryschedule,raisingstipendlevelsfornonathleticandathleticcoaches,andexamining

    theuseoftargetedstipends.

    APAappreciatestheopportunitytoworkonthisprojectandthanksallthestaffthathelpedusduring

    thestudy.

    Sincerely,

    JustinSilverstein

    VicePresident,APAConsulting

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    i

    Contents

    I.INTRODUCTION.......................................................................................................................................... 1

    II.CURRENTDISTRIBUTIONANDFLOW........................................................................................................ 2

    TheData.................................................................................................................................................... 2

    Distribution............................................................................................................................................... 2

    TeachersComingintotheSystem............................................................................................................ 6

    TeachersLeavingtheSystem.................................................................................................................... 7

    StatisticalAnalysisofFactorsAssociatedwithAttrition........................................................................... 9

    Conclusion............................................................................................................................................... 12

    III.COMPARABLEWAGEANALYSIS............................................................................................................. 13

    SourcesofInformationaboutComparisonOccupations....................................................................... 14

    MethodologicalApproach...................................................................................................................... 14

    IdentifyingComparisonOccupations.................................................................................................. 14

    ComparisonGroup1:OtherCollegeEducatedWorkers.................................................................... 15

    ComparisonGroup2:ProfessionalandTechnicalOccupations......................................................... 15

    ComparisonGroup

    3:

    EPI

    Identified

    Comparison

    Occupations

    ..........................................................

    15

    ComparisonGroup4:ExpandedComparisonGroup.......................................................................... 16

    AdjustingfortheCharacteristicsofWorkersandOccupations.............................................................. 16

    SalaryComparisons:OESDataonOccupationsinHawaiiandOtherStates.......................................... 17

    SalaryComparisons:ACSDataonIndividualsinHawaiiandOtherStates............................................. 22

    Conclusion............................................................................................................................................... 24

    IV.SALARYSTRUCTUREANDLEVELCOMPARISONS................................................................................... 25

    SelectingComparisonDistricts............................................................................................................... 25

    StructureofDistrictSalarySystems........................................................................................................ 26

    AdjustingforWorkLoadandGeographicCostDifferences................................................................... 32

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    WorkLoad........................................................................................................................................... 32

    GeographicCostDifferences.............................................................................................................. 38

    CombiningWorkLoadandGeographicCostDifferences................................................................... 42

    Conclusion............................................................................................................................................... 44

    V.COMPARISONOFBENEFITS,STIPENDS,ANDRETIREMENT................................................................... 46

    Benefits................................................................................................................................................... 46

    HealthInsurance................................................................................................................................. 46

    DentalandVision................................................................................................................................ 47

    SickLeaveandPersonalDays............................................................................................................. 47

    SupplementalPay................................................................................................................................... 47

    NonAthletic

    Coach

    Stipends

    ..............................................................................................................

    48

    AthleticCoachStipends...................................................................................................................... 49

    Retirement.............................................................................................................................................. 50

    Conclusion............................................................................................................................................... 52

    VI.RECRUITMENTANDRETENTIONANDRECOMMENDATIONS................................................................ 54

    Recruitment............................................................................................................................................ 54

    Retention................................................................................................................................................ 54

    Recommendations.................................................................................................................................. 55

    AppendixA:RegressionResults,CorrelationwithLeaving........................................................................ 56

    AppendixB.................................................................................................................................................. 58

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    1

    I. INTRODUCTION

    TheJuly1,2013June30,2017agreementbetweentheHawaiiStateTeachersAssociation(HSTA)and

    theHawaiiDepartmentofEducation(HDOR)calledforacomprehensivestudyofthestatesteacher

    compensationsystem.

    The

    state

    put

    out

    arequest

    for

    proposals

    (RFP)

    seeking

    avendor

    to

    complete

    the

    study,andselectedAugenblickPalaichandAssociates(APA)asthevendor.

    Thecompensationsystemsthatdistrictssetupcontainanumberofdifferentparts,includingbasepay

    forteachers(usuallybasedonasalaryschedule);stipendsforadditionalservices;andbenefitspackages

    includinghealthinsurancecoverageandretirement.Asdistrictscrafteachpieceofthecompensation

    system,theycreatepackagesuniquetoeachdistrict.ThisstudyexamineseachpieceofHawaiisteacher

    compensationsystemandprovidesanumberofrecommendationsbasedontheanalysis.

    Thisstudycontainssixchapters,includingthisbriefintroduction(ChapterOne):

    ChapterTwo

    reviews

    the

    current

    distribution

    and

    flow

    of

    teachers

    in

    Hawaii.

    First,

    it

    examines

    whereteachersareonthecurrentsalaryscheduleandhowithaschangedovertimeislooked

    at.Second,itlooksatthetrendsofwhenteachersenterteachinginHawaiiandwhenthey

    leave.Finally,ChapterTworunsaregressiontodeterminewhatfactorsmightplayarolein

    teacherretention.

    ChapterThreeisacomparablewagestudyexamininghowteachingsalariescomparewithother

    occupationsalarieswithinHawaii.Thesesalarydifferencesarecomparedtodifferencesinother

    statesthroughoutthecountry.

    Chapter

    Four

    compares

    Hawaiis

    salary

    schedule

    structure

    and

    salary

    levels

    to

    those

    of

    12

    comparisondistrictsaroundthecountry.Salariesarecomparedbothatarawlevelandalso

    afteradjustingforworkloadandgeographiccostdifferences.

    ChapterFiveexaminesthestipends,benefits,andretirementplansofferedinthetwelve

    comparisondistricts,comparesthemtoHawaiisstipends,benefits,andretirementplans.

    Healthinsurance,dentalandvisioninsurance,sickdays,andstipendsforadditionaldutiesare

    allexamined.

    ChapterSixtakesthestudyinformationandexaminesthepossibleinfluencesonrecruitment

    andretention.ChapterSixthenoffersafewrecommendationsforpossiblechangestothe

    currentsystem.

    Whenreviewinginformationoncomparisonstootherdistricts,itisimportanttokeepinmindthe

    limitationsofthisresearch.APAdoesnothaveinformationontheeffectivenessofthecomparison

    districtscompensationsystemsinattractingandretainingstaff,orinmeetingotherdistrictgoals.

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    II. CURRENT DISTRIBUTION AND FLOW

    APAexamineddatareceivedfromtheHDOEforthe200910,201011,201112,201213,and201314

    schoolyears.Thisdatawasusedtounderstandthedistributionofteacherswithinthepaysystem,the

    flowofteachersinandoutofthesystem,andthereasonswhyteachersmaybeleavingthesystem.

    The Data

    TheHDOEprovideddatacamefromthepersonneltransactiondatabase.Thedatahadmultiplerecords

    perpersonperyear,basedonthenumberofpersonneltransactions.Toanalyzethisinformation,the

    datasetwasreducedtooneobservationperyear.Thefinalobservation,whichwasbasedonthemost

    recentobservationupdate,wasusedtoidentifythesalarycodesforeachteacher.

    Thelocationinformationforwhereeachpersonworkedwasthenusedtoconnectteacherswith

    informationabouttheirschools,basedoninformationcontainedintheSchoolStatusandImprovement

    Report(SSIR).Ateacherwasidentifiedasquittingifs/heappearedinthedatabaseasateacherforany

    given

    year,

    but

    not

    for

    the

    next

    year.

    Similarly,

    a

    new

    teacher

    was

    identified

    as

    a

    person

    who

    appears

    in

    thedatabaseasateacherforanygivenyear,butwhowasnotlistedateacherinthedatabaseduring

    theprioryear.YearsofservicewererecordedaseachpersonstotalyearsofserviceinHawaii.

    Distribution

    Understandingthecurrentdistributionofteacherswithinthecompensationsystemisafirststepto

    understandinghowthesystemisfunctioning.Hawaiisteacherpaysystemisbasedonatraditional

    salaryschedulethatrewardseducationlevelandyearsofservice.Educationrecognitionincludessix

    possibleclasses,startingwithClassII(aBachelorsdegree)andendingwithClassVII(aDoctorateora

    Mastersplus60credits).TeacherswithaBachelorsdegreeand30creditsareplacedinClassIIIalong

    withthosewithaMastersdegree.Anadditional15creditsarerequiredtomovetoClassesIVthrough

    VI.

    Recognitionofteacherexperienceisexpressedthrough15possiblesteps.Thestepsdonotcorrelate

    directlytoyearsofexperience.Infact,thefirstthreestepsinHawaiissalaryscheduleareonlyfor

    teacherswhohavenotcompletedastateapprovedteachereducationprogram(SATEP).

    Lookingatthedistributionofteachersovertime,itisclearalargeshiftinstepsoccurredbetweenthe

    201213and201314schoolyears.TableII1belowshowsthedistributionofteachersin201213onthe

    salaryschedule.Forallyears,thedistributionacrossclassesissimilar,withthemajorityofteachersin

    ClassesIIandIII.The201213distributionacrossstepsissimilartothatofthe201011and201112

    years.The

    majority

    of

    teachers

    fall

    into

    Steps

    5and

    7.

    Teachers

    are

    also

    concentrated

    in

    Steps

    6,

    8,

    9,

    and10.

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    TableII1

    DistributionofTeachers201213

    Step ClassII ClassIII ClassIV ClassV ClassVI ClassVII Total

    1

    185

    16

    0 0 0 0

    2012 1 0 0 0 0 0 1

    3 0 6 0 0 0 0 6

    5 1,301 1,984 246 77 28 41 3,677

    6 174 463 107 47 27 45 863

    7 504 983 611 478 429 815 3,820

    8 67 116 144 161 158 597 1,243

    9 52 97 108 128 140 661 1,186

    10 15 23 33 36 35 200 342

    11 11 20 27 24 39 201 322

    12

    25

    55

    61 68 98 555

    86213 23 29 38 35 62 379 566

    14 7 14 20 20 30 221 312

    14A 7 4 9 11 11 116 158

    14B 1 6 11 14 35 217 284

    Total 2,373 3,816 1,415 1,099 1,092 4,048 13,843

    TableII2showsthe201314distributionofteachers.ComparingTablesII1andII2showsashiftin

    placementalongthesalaryschedulegridforthe201314schoolyear,reflectiveoftheJuly1,2013

    June30,

    2017

    agreement

    between

    the

    HSTA

    and

    the

    HDOE.

    In

    2013

    14,

    around

    46

    percent

    of

    teachers

    areonSteps6and8.Steps5,7,9,and10alsohavehighconcentrationsofteachers.

    Thelinkbetweenstepsandyearsofexperienceisrelativelylinear,buttheactualprogressionthrough

    thestepsisnotaoneyeartoonesteprelationship.Steps5through14Bareforteacherswhohave

    completedanapprovedSATEP.Step5issupposedtoincludeteachersintheirfirstandsecondyearsof

    teaching,oftenreferredtoasyears0and11.Step6ofthescheduleincludesthoseteachersintheir

    secondthroughsixthyearsofteaching.TableII3showstheaverageyearsofexperienceofpersonnel

    withinallcellsofthesalaryscheduleforthe201213schoolyear.(APAusesthetermcelltoreferto

    thespecificcombinationsofeducationlevelandstep.)TableII4showstheaverageyearsofexperience

    afterthestepadjustmentfor201314.

    1http://www.hawaiipublicschools.org/DOE%20Forms/OHR%20Employment/TeachersSalarySch2014 2015.pdf

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    TableII2

    DistributionofTeachers201314

    Step ClassII ClassIII ClassIV ClassV ClassVI ClassVII Total

    1 168 10 0 0 0 0 178

    2 34 6 0 0 0 0 40

    3

    0

    9

    0 0 0 0

    9

    5 573 689 40 9 3 11 1,325

    6 986 1,643 276 112 54 58 3,129

    7 187 443 187 108 66 135 1,126

    8 409 798 520 421 376 834 3,358

    9 56 112 132 152 145 600 1,197

    10 46 79 94 111 124 612 1,066

    11 12 26 33 32 26 201 330

    12 10 16 27 25 46 207 331

    13 23 56 53 66 85 528 811

    14 21 22 32 29 51 336 491

    14A 9 13 18 17 24 191 272

    14B 6 9 20 19 38 265 357

    Total 2,540 3,931 1,432 1,101 1,038 3,978 14,020

    ExcludingteacherswhohavenotcompletedaSATEPprogramfromtheexamination,yearsof

    experiencegenerallyincreaseasstepsgethigher.Thisistrueinbothyears,acrossallclasses.Focusing

    juston201314,averageyearsofexperienceishigherforClassesIVthroughVIIinSteps5through8.

    Steps9through14Bseemoreconsistencyinaverageyearsofexperienceacrossclasses.

    TableII

    3AverageYearsofExperiencebyClassandStep201213

    Step ClassII ClassIII ClassIV ClassV ClassVI ClassVII

    1 2.6 2.1

    2 3.0

    3 5.7

    5 4.4 4.7 6.5 7.1 7.0 7.2

    6 7.7 7.1 8.5 8.4 8.6 8.7

    7 11.8 11.3 12.5 13.2 13.5 14.0

    8 16.5 16.7 17.4 17.6 18.3 18.7

    9 20.6 20.4 20.8 21.3 21.8 21.9

    10

    23.7

    24.0 23.7 23.2 23.9

    23.811 25.0 24.3 24.0 25.0 25.0 25.5

    12 25.8 26.4 26.6 26.2 26.5 26.8

    13 30.0 29.0 29.1 28.9 29.4 29.5

    14 31.4 31.8 31.9 31.5 31.0 32.0

    14A 34.4 29.0 33.6 33.0 35.5 34.9

    14B 37.0 32.8 40.0 38.3 40.0 39.3

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    TableII4

    AverageYearsofExperiencebyClassandStep201314

    Step ClassII ClassIII ClassIV ClassV ClassVI ClassVII

    1 2.0 1.7

    2 2.7 2.4

    3

    4.6

    5 2.8 3.5 6.2 7.1 5.0 6.1

    6 4.6 4.8 6.4 6.6 7.0 7.2

    7 8.7 8.0 9.5 11.1 11.3 12.0

    8 12.1 11.4 12.7 13.2 13.8 14.2

    9 16.6 17.2 17.9 17.8 18.6 19.1

    10 21.0 20.3 20.5 21.6 21.8 21.9

    11 23.5 23.0 23.8 23.3 24.3 24.0

    12 25.6 24.4 24.5 25.0 25.4 25.5

    13 25.8 26.8 26.8 26.6 26.8 27.1

    14 30.1 29.0 29.6 28.6 29.7 29.8

    14A

    32.0

    30.5 32.1 31.7 31.2

    32.314B 35.0 33.0 36.9 35.7 38.9 37.9

    TableII5showstheaverageyearsofexperienceofallteachersinastep,regardlessoftheireducational

    class,for201314.Itappearstotakearoundadecadetomovefromthefirststep,Step5,tothefourth

    step,Step8.ThereisafiveandahalfyeardifferenceintheaverageexperienceofteachersinStepeight

    comparedtothoseinStep9.Notsurprisingly,Step8hasbyfarthemostteachers,withover3,300

    teachersinStep8duringthe201314schoolyear.Thisisthelargestdifferencebetweensteps,other

    thanbetween14Aand14B(whichisnearlysixyears,butonlyrepresentsabout630teachersacross

    Steps14Aand14B).

    TableII

    5

    AverageYearsofExperiencebyStep

    Step AverageYears

    5 3.2

    6 5.0

    7 9.0

    8 12.8

    9 18.3

    10 21.5

    11 23.8

    12 25.3

    13

    26.9

    14 29.6

    14A 31.9

    14B 37.8

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    Teachers Coming into the System

    APAwasabletocreateinformationonteachersenteringtheteacherpaysystembytakingthefiveyears

    ofHDOEprovideddataandthenidentifyingteacherIDsineachyearthatdidnotexistintheprevious

    year.Thismethodgeneratedfouryearsworthofdata,including201011,201112,201213,and2013

    14.TableII6showsthatthevastmajorityoftheteachersenteringthesystementerwitheducationat

    theClass

    IIor

    Class

    III

    levels.

    TableII6

    NewTeachersbyClass

    Year ClassII ClassIII ClassIV ClassV ClassVI ClassVII Total

    201011 472 490 20 10 10 24 1,028

    201112 493 579 13 10 7 16 1,120

    201213 500 560 13 6 11 21 1,111

    201314 597 598 19 17 8 40 1,279

    TableII7showsteacherscomingintothesystemaremostoftencominginatSteps5,6,or7inallfour

    yearsfrom201011to201314.TeachersplacedathigherstepsmostlikelyhadpriorHDOEexperience.

    TableII7

    NewTeachersbyStep

    Step 201011 201112 201213 201314

    1 141 122 95 117

    2 1 2

    3 1 2 3

    5 675 839 934 622

    6 101 98 11 386

    7 67 43 49 28

    8 14 10 6 78

    9 9 2 5 20

    10 6 5 10

    11 6 2 1 4

    12 2 4 1

    13 2 1 4

    14

    2 214A 2

    14B 2

    FigureII1belowshowstheagedistributionforallteachersenteringthesystemforthefouryears.Since

    theapproachtoidentifyingstaffenteringthesystemusesteacherIDsnotpresentintheprioryear,

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    someotherteachersteacherswhohavecomebacktoteachingeitheraftertimeoffortimeinanon

    teachingpositionarealsoincludedinthefigures.Thismayaccountforsomeormanyofthehigher

    agedteachersinthedistribution.ItwouldalsoaccountforsomeoftheteachersintablesII3andII4

    whowereplacedinstepsaboveStep5(whichisdesignatedfornewteachers).

    Thedata

    on

    teachers

    entering

    the

    system

    shows

    that

    the

    majority

    of

    teachers

    are

    new

    to

    teaching

    or

    in

    theirfirstfewyearsofteaching.Agesofnewteachersvaries,butthemajorityofnewteachersarein

    their20sorearly30s.

    FigureII1:AgeDistributionofTeachersEnteringSystem

    Teachers Leaving the System

    APAsexaminationofteachersleavingthesystemidentifiedteacherswhowereintheteacherpay

    systemoneyearbutwhodidnotappearinthesystemthefollowingyear.Thisprovidedfouryearsof

    dataonteachersexitingthesystem,from200910,201011,201112,and201213.TableII8below

    showsthenumberofteachers,byclass,wholefttheteacherpaysystem.Totalnumbersofteachers

    exitingthesystemwerelowerin200910thantheotherthreeyears.Inallfouryears,alargepercentage

    oftheteachersleavingwereinClassVII,representingmoreeducatedandgenerallymoreexperienced

    teachers,andpossiblyrepresentingretirees.Inmostyears,ClassesIIandIIIalsohadlargenumbersof

    teachersleaving,representinglesseducatedandoftenlessseniorteachers.

    0

    50

    100

    150

    200

    250

    300

    350

    22

    24

    26

    28

    30

    32

    34

    36

    38

    40

    42

    44

    46

    48

    50

    52

    54

    56

    58

    60

    62

    64

    66

    68

    70

    72

    74

    75+

    NumberofTeahcers

    Age

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    TableII8

    TeachersLeavingbyClass

    Step ClassII ClassIII ClassIV ClassV ClassVI ClassVII Total

    200910 92 125 44 28 32 229 550

    201011

    343

    384 86 71 66 307

    1,259

    201112 273 345 87 76 66 247 1,095

    201213 282 370 72 63 61 254 1,103

    TableII9looksatthestepplacementsforteachersleavingtheteacherpaysystemacrossthefouryears.

    Liketheexaminationofclassesabove,thedistributionwithinstepsseemstoindicateasomewhat

    bimodalpopulationofteachersleavingtheteacherpaysystem.Inallyears,alargenumberofteachers

    exitfromSteps12andabove.Forthemostrecentyears,largenumbersofteachersarealsoleaving

    fromtheearlycareersteps,Steps1,5,6,and7.

    TableII9

    TeachersLeavingbyStep

    Step 200910 201011 201112 201213

    1 20 92 78 80

    2 3 5

    3 1 3

    5 64 291 309 385

    6 42 119 118 90

    7 94 273 191 201

    8

    33 87 66 619 28 70 58 42

    10 5 20 12 21

    11 14 25 19 11

    12 34 60 56 48

    13 25 42 30 51

    14 22 26 37 36

    14A 27 39 35 25

    14B 138 106 86 52

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    FigureII2:AgeDistributionofTeachersLeaving

    FigureII2aboveshowsthedistributionofteachersleavingthesystembyage.TheUshapeiscommon

    fortheagedistributionofexitingteachersinotherdistrictsAPAhasstudied.Teachersleavingthe

    systemareeitheryounger,andnewertoteaching,oraremucholder,andattheendoftheirteaching

    careers.ThemaindifferencebetweenthisagedistributionandthedistributioninotherdistrictAPAstaff

    hasanalyzedisthattheretirementpeakusuallycomesatayoungerage.Thatis,inmanystates,wesee

    retirementassociatedattritionatayoungeragethanseenhere.

    Statistical Analysis of Factors Associated with Attrition

    Theanalysisabove,particularlyFigureII2,showsthatakeycorrelatewithteacherattritionisteacher

    age.Using

    aregression

    analysis,

    APA

    examined

    whether

    the

    location

    of

    the

    school

    or

    student

    characteristicswerealsocorrelatedwithteachersleavingthesystem.Regressionanalysis,asastatistical

    technique,allowsidentificationoffactorscorrelatedwithteacherdepartureswhilestillholdingthe

    otherfactorsintheregressionconstant.

    APAusedalogisticregressiontheappropriatetoolforregressionanalysiswhentheoutcome(inthis

    case,departure)isayesorno. Theanalysislooksatthreetypesofpredictorsofattrition.Firstare

    demographicpredictorsassociatedwiththeteachersagesandeducationlevels.Thedescriptiveanalysis

    abovehasshownthesepredictorsareassociatedwithattrition. Second,theanalysislooksatwhether

    locationisassociatedwithattritionthatis,whetherthedistrictwhereapersonworkedwasassociated

    with

    higher

    rates

    of

    attrition.

    Finally,

    the

    analysis

    examines

    whether

    student

    characteristics

    are

    associatedwithhigherratesofattrition.Extensiveresearchonteacherattritionhasshownthatschools

    0

    50

    100

    150

    200

    250

    300

    22

    24

    26

    28

    30

    32

    34

    36

    38

    40

    42

    44

    46

    48

    50

    52

    54

    56

    58

    60

    62

    64

    66

    68

    70

    72

    74

    NumberofTeache

    rs

    Age

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    withmorelowincomestudents(i.e.morestudentsqualifyingforfreeandreducedlunch)andschools

    withlowerstudentperformancehavehigherratesofteacherattrition.2

    ThefullregressionresultsareshowninAppendixA.TableII10,below,providesasummary.The

    regressionmeasureswhethereachofthepredictorsisassociatedwithteachersdecisionstoleave

    (attrition).The

    column

    on

    the

    right,

    notes

    ifthe

    predictor

    is

    statistically

    associated

    with

    ateachers

    decisiontoleave.Alloftheindicatorsofyeararesignificant,asareallofthemeasuresofateachersage

    andexperience.Noneofthesefindingsissurprising,giventhedifferencesinattritionbyyearandthe

    associationsbetweenattritionandageandexperience.

    Whereateacherworksisgenerallynotassociatedwiththedecisiontoleave,exceptinthecharter

    district.Infact,threeofthefourfactorsassociatedwiththeschoolswhereteachersworkarenot

    associatedwithattrition:percentofstudentsqualifyingforfreeandreducedlunch;percentofstudents

    whoareproficientinreading;andmeasureofstudenttransience,whichidentifiesthepercentof

    studentswhoareenrolledfortheentireyear.

    Itis

    important

    to

    note

    the

    direction

    for

    each

    factor.

    A

    positive

    direction

    means

    that

    when

    the

    factor

    is

    presentorgoesup,attritionalsogoesup.Anegativedirectionmeanswhenafactorispresentorgoes

    up,attritiongoesdown.Factorsthatwerestatisticallyshowntobeassociatedwithattritioninclude:

    workinginthecharterdistrict(positive);receivinga$1,500hardtostaffbonus(negative);andpercent

    ofstudentswhoareproficientinmath(negative).Theseassociationsdonotnecessarilymeanthatthese

    factorscausedteacherstoberetainedorleave;rather,theassociationssimplyshowcorrelations.Other,

    unmeasuredfactorscouldhavecausedthesechangesinattrition,andshouldnotberuledoutas

    possibilities.

    Receivingone$1,500stipendcorrelateswithaboutathreepercentagepointreductioninattrition.It

    shouldbe

    noted

    that

    APA

    tested

    five

    different

    bonuses:

    (1)

    $1,500

    hard

    to

    staff;

    (2)

    $750

    hard

    to

    staff

    forhalftimeteachers;(3)$3,000retentionoflicensedspecialeducation#1;(4)$3,000retentionof

    licensedspecialeducation#2;and(5)$4,000retentionoflicensedspecialeducation#3.The$750hard

    tostaff,$3,000retentionoflicensedspecialeducation#1,$3,000retentionoflicensedspecial

    education#2,and$4,000retentionoflicensedspecialeducation#3bonuseswerereceivedbysofew

    people(fewerthan10teachersperyear)thatitwasimpossibletostatisticallytestwhethertheywere

    associatedwithattrition.The$1,500hardtostaffbonus,incontrast,hadabout1,200recipientsin2011

    and2012

    Workinginthecharterschooldistrictisassociatedwithasixpercentagepointincreaseinprobabilityof

    attrition.

    As

    with

    the

    hard

    to

    staff

    bonus

    analysis,

    this

    does

    not

    necessarily

    mean

    that

    working

    in

    this

    districtcauseshigherattrition;itissimplyacorrelation.

    2Borman,G.D.andN.M.Dowling.2008.TeacherAttritionandRetention:AMetaAnalyticandNarrativeReviewof

    theResearch.ReviewofEducationalResearch78:367409.

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    Finally,highermathproficiencyscoresareassociatedwithlowerattrition.Itiscommontofindlower

    attritioninhigherachievingschools.Thechangesassociatedwithincreasedachievementareverysmall,

    though;abouta0.1percentagepointdecreaseinattritionisassociatedwitha10percentagepoint

    increaseinmathproficiencyataschool.

    TableII10

    SummaryofRegressionResultsPredictingWhetheraTeacherWill

    Leave

    Predictors Direction Statistically

    Significant

    TotalyearsofServiceCredit Yes

    Indicateshas3orfeweryears

    ofservicecredit

    + Yes

    Yearis2010 + Yes

    Yearis2011 + Yes

    Yearis

    2012

    + Yes

    Ageis62orhigher + Yes

    WorksintheCharterdistrict + Yes

    WorksintheCentraldistrict No

    WorksintheHawaiidistrict No

    WorksintheHonoluludistrict No

    WorksintheKauaidistrict No

    WorksintheLeewarddistrict No

    WorksintheMauidistrict No

    Percentproficient

    in

    reading

    No

    Percentproficientinmath Yes

    PercentofStudentswho

    qualifiedforfreeandreduced

    lunch

    No

    Percentofstudentsenrolled

    forentireschoolyear

    No

    Receiveda$1,500Hardto

    staffbonus

    Yes

    Constant Yes

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    Conclusion

    Hawaiisteacherpaysystemisbasedonatraditionalsalaryschedulethatrewardseducationlevelsand

    yearsofservice.Educationrecognitionincludessixpossibleclasses,accountingfor15possiblesteps.

    Thestepsdonotdirectlymatchyearsofexperience.Thelimitednumberofstepsonly12forteachers

    whohavecompletedaSATEPresultinteachersspendingmultipleyears,sometimesuptohalfa

    decadeor

    more,

    in

    one

    step.

    TeacherscomingintothesystemaremostoftencomingonatSteps5,6,or7inallfouryearsofdata

    examined.Whileteachersareentering(orreturningto)theprofessionatalmostallages,themajorityof

    teachersenteringthesystemareyoung.Theagedistributionofteachersleavingthesystemfollowsthe

    traditionalUshapeddistribution,withhighproportionsofleaverswhoareunder35andover55.

    Regressionanalysiswasusedtoexaminefactorsassociatedwithattrition.Generallythedistrictwhere

    teachersworkisnotassociatedwithattrition.Factorsassociatedwithattrition,otherthanageand

    experience,areworkinginthecharterdistrict(higherattrition),receivinga$1,500hardtostaffbonus

    (lowerattrition),andpercentofstudentswhoareproficientinmath(lowerattrition).Student

    characteristicssuchashigherassessmentscoresorlowerproportionsoffreeandreducedlunch

    studentsareoftenassociatedwithlowerteacherattrition.Therelationshipbetweenthesefactorsand

    attritionintheHawaiidatawerenotasstrongasrelationshipsfoundinsomepriorresearch.3Allof

    theseassociationsdonotmeanthatthesefactorsnecessarilycausedteacherstostayortoleave.We

    cannotruleoutother,unmeasuredfactorsthatcouldalsobeassociatedwiththesechangesinattrition.

    3Borman,G.D.andN.M.Dowling.2008.TeacherAttritionandRetention:AMetaAnalyticandNarrativeReviewof

    theResearch.ReviewofEducationalResearch78:367409.

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    III. COMPARABLE WAGE ANALYSIS

    Individualsconsideringbecomingateacherareinfluencedbycomparisonsofteacherwagestothoseof

    abroadarrayofotheroccupations.Similarly,studieshavefoundthatteachingsalaries,relativetoother

    occupationsalaries,influenceteacherexitrates.4

    Becauseoftheimpactsalarylevelsofcomparableoccupationshaveontheabilityofschoolssystemsto

    recruitandretainqualityteachers,itisimportanttoexaminehowteachingsalariescomparewith

    salariesinotheroccupations.Salariesvaryacrossfieldsforavarietyofreasons.Inasupplyanddemand

    framework,salariesvaryinpartbasedonhowspecializedofaskillsetisrequired.Thisincreasestraining

    andeducationcostsforindividualswhowishtopursuethatcareerandlimitsthenumberofindividuals

    whoareabletoenterthatprofession.Asaresult,highlyspecializedortechnicaloccupationstendto

    commandhighersalaries.Theseoccupationsalsotendtoattractthemostskilledandableindividuals.

    Inthecaseofteaching,thesetofskillsrequiredforentryintotheprofessionisnotashighlyspecialized

    as

    some

    other

    comparable

    professional

    occupations.

    However,

    teachers

    vary

    substantially

    in

    ability

    and

    effectiveness,withhighqualityteachersmakingsignificantimpactsonstudentoutcomes.5Asaresult,

    whilethecurrentrangeofteachingsalariesmightbesufficienttofillavailableteachingpositions,higher

    salariesthataremorecompetitivewiththeoccupationsthattendtoattractthemostskilledand

    effectiveworkerscouldenablerecruitmentof agreaternumberofhigherqualitycandidatesintothe

    teachingfield,thusinfluencingstudentoutcomes.6

    Workingconditionsareasecondfactorinwagecomparisonsacrossoccupations.Careersthatare

    particularlydangeroustendtocommandapremiumtocompensatefornegativequalities.Othercareers

    withmorefavorableworkingconditionscanattractindividualsevenifsalariesaresomewhatlower.

    Suchpaydifferencesduetopositiveornegativeworkingconditionsareknownascompensating

    differentials.Teachingjobshaveasetofconditionsthattendtobelargelyfavorableincomparisonto

    otherprofessionaloccupations:weeksofworkperyearforafulltimepositionarelowerthanweeksof

    workformanyotherfulltimeoccupations,andteachingtendstohaveafavorablesetofhealthand

    retirementbenefits.

    Inlightoftheseconsiderations,weuseavarietyofmethodstocompareteachingtootheroccupations

    withinHawaii.Becauseoftheinherentdifferencesintheskills,attributes,andbenefitsacross

    occuaptions,thisstudyputssalarycomparisonsinHawaiiwithinthecontextofsimilarsalary

    comparisonsinotherstates.Forexample,ifregisterednursesacrossthecountrytendtoworkmore

    4Hanushek,

    E.

    A.,

    Kain,

    J.

    F.,

    &

    Rivkin,

    S.

    G.

    (2004).

    Why

    public

    schools

    lose

    teachers.

    Journal

    of

    Human

    Resources,

    39(2),326354.andGuarino,C.M.,Santibanez,L.,Daley,G.A.,&Brewer,D.J.(2004).Areviewoftheresearch

    literatureonteacherrecruitmentandretention.SantaMonica,CA:RANDCorporation.5Rockoff,J.E.(2004).Theimpactofindividualteachersonstudentachievement:Evidencefrompaneldata.

    AmericanEconomicReview,247252.6Loeb,S.,&Page,M.E.(2000).Examiningthelinkbetweenteacherwagesandstudentoutcomes:Theimportance

    ofalternativelabormarketopportunitiesandnonpecuniaryvariation.ReviewofEconomicsandStatistics,82(3),

    393408.

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    hoursthanteachersortendtohavemoredifficultworkingconditions,itmightbeexpectedthatsalaries

    forthisoccupationwouldbehigher.ButifthepaygapislargerinHawaiithaninotherstates,this

    suggeststhatteachersinHawaiiareatacompetitivedisadvantage.Thisstudyalsoprovidesinformation

    onbothbroadbasedcomparisonoccupationgroupsaswellasmorenarrowgroups.Finally,thisstudy

    presentsunadjustedsalariesaswellassalariesafteraccountingfordifferencesinhours,weeksofwork,

    characteristicsof

    workers,

    and

    advanced

    degrees.

    Sources of Information about Comparison Occupations

    Thecomparablewagecomparisonreliesontwosourcesofdatatomakesalarycomparisonswithin

    Hawaiiandacrossthenation.TheBureauofLaborStatistics(BLS)conductstheOccupational

    EmploymentStatistics(OES)eachquarter.TheMay2013dataisthemostcurrentsourceofinformation

    aboutsalariesacrossoccupations.Theadvantageofthisdataisitsbroadcoverageandrecentestimates.

    TheOESsamplesaredesignedtoproduceaccurate,occupationlevelmeanwageandemploymentlevels

    foreachstateintheUnitedStates.ThedisadvantageoftheOESdataisthatitisasurveyofemployers

    only,andsodoesnotincludepersonalcharacteristicsofworkers.Asaresult,thedatacannotbe

    adjustedfor

    workers

    characteristics

    (e.g.,

    work

    experience,

    education,

    gender,

    hours

    of

    work).

    ThesecondsourceofdataistheAmericanCommunitySurvey(ACS),anannualsurveybytheU.S.

    Census.TheACSisaminicensusofhouseholds.SamplesizesaremuchlowerintheACSthaninthe

    OESsurvey,andthereisalongerlagfortheACSdatarelease,with2012beingthemostcurentyear

    available.Thisdatahasmuchsmallersamplesizes.Socomparisonstospecificoccupationsaremore

    difficultwhenonlyafewindividualsreportagivenoccupation.However,thesedataarerichsourcesof

    informationaboutpersonalcharacteristicsnotfoundintheOES:individualsreportsalaryincomealong

    withdemographiccharacteristics,hoursandweeksofwork,andeducationlevel.Toincreasesample

    sizes,thisanalysisusestheAmericanCommunitySurvey5Yearsample,whichcontainsdatafrom2008

    2012.

    The

    ACS

    data

    sample

    is

    restricted

    to

    individuals

    most

    similar

    to

    teachers.

    The

    sample

    is

    restricted

    toindividualswithaBachelorsdegreeorhigherwhoarenotcurrentlyinschoolandwhoarenotself

    employed.Itisalsorestrictedtofulltimeworkers,definedtobethoseworkingmorethan27weeksper

    yearandworkingmorethan35hoursperweek.Toexcludeindividualsclosetoretirementageorof

    ageswhentheireducationmaynotbefullycomplete,itisalsorestrictedtoindividualsbetweenthe

    agesof22and65.

    Methodological Approach

    Therearetwomainchallengesincomparingteachersalarieswithsalariesofotherworkers:identifying

    occupationsofcomparisongroupsandadjustingforworkercharacteristics.

    Identifying Comparison Occupations

    Thefirstmethodologicalissueisdeterminingwhichoccupationstouseascomparisongroups.This

    analysisusesfourbroadcategoriesforcomparisontoteachers:(1)othercollegeeducatedworkers;(2)

    otherprofessionalandtechnicaloccupations;(3)occupationsmostsimilartoteaching;and(4)an

    expandedsetofcomparisonoccupations.Inaddition,theexpandedsetofcomparisonoccupations

    analysisincludesdisaggregationsforcomparisonswithsmalleroccupationalgroups.Thisanalysis

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    presentscomparisonswithfivenarroweroccupationalgroups:socialandcommunityservice

    occupations,comparablebusinessoccupations,postsecondaryteachersandprofessors,registered

    nursesandhealththerapists,andarchitectureandengineeringoccupations.

    Comparison Group 1: Other College Educated Workers

    ComparisonGroup

    1consists

    of

    all

    other

    collegeeducated

    workers.

    This

    approach

    starts

    with

    the

    fact

    thatapotentialcollegestudentcanchoosefromanyoccupationopentoapersonwithaBachelors

    degree,includingteaching.Someofthesepossibleoccupationsareunlikelytodrawincollegeeducated

    workersaftertheyhavealreadyenteredtheteachingprofession.Forexample,ateachercouldnot

    changecareersandbecomealawyerwithoutadditionaltraining.However,acollegestudentmaywell

    considerthesalariesinlawalongwithsalariesinteachingwhenmakingacareerchoice.Anumberof

    researchersandeconomistshaveusedwagesofcollegeeducatedworkersinmakingsalary

    comparisons.7Thesestudiesfindthatsalariesofteachersrelativetosalariesofothercollegeeducated

    workersaregoodindicatorsoftherelativeattractivenessofteaching.

    Comparison Group 2: Professional and Technical Occupations

    ComparisonGroups2through4arebasedontheskillsandattributesofthejob.Byformulating

    comparisongroupsonthebasisofjobskillsandattributes,thesalariesofteachersmaybecompared

    withthoseofothersimilarlyskilledoccupations.ComparisonGroups2through4varydependingon

    howcloseofaskillmatchisusedforthecomparison.TheBureauofLaborStatisticsusesaStandard

    OccupationalClassification(SOC)tocategorizeoccupationsbasedonworkperformed,skills,education,

    and/ortraining(See2010SOCUsersGuideformoredetails).Occupationsaredividedinto23different

    majorgroupings.

    TeachersareintheEducation,Training,andLibraryOccupationsgroup.These23groupsarefurther

    aggregatedinto

    six

    major

    categories.

    Teachers

    belong

    to

    the

    Professional

    and

    technical

    occupations

    category(OCCCodes11000through29999).8Thiscategoryisalsosometimesreferredtoas

    Management,Business,ScienceandArtsOccupations.AppendixBliststhe11BLSdefined

    occupationalgroupsincludedinthiscategory.

    Comparison Group 3: EPI Identified Comparison Occupations

    Morerefinedlistsofcomparableoccupationshavebeencreatedusingmatchesbasedonspecificskills

    andattributesofoccupations.TheU.S.BureauofLaborStatisticsNationalCompensationSurveyreports

    theskillsandattributesofoccupationsalong10dimensions,includingfactorssuchasknowledge

    required,supervisionreceived,andcomplexityoftasks.TheEconomicPolicyInstitute(EPI)analyzedthis

    datato

    identify

    16

    occupations

    most

    comparable

    to

    teaching.

    The

    comparison

    occupations

    include

    7Taylor,L.L.(2008).Comparingteachersalaries:InsightsfromtheUSCensus.EconomicsofEducationReview,

    27(1),4857.andLoeb,S.,&Page,M.E.(2000).Examiningthelinkbetweenteacherwagesandstudentoutcomes:

    Theimportanceofalternativelabormarketopportunitiesandnonpecuniaryvariation.ReviewofEconomicsand

    Statistics,82(3),393408.8TheotherfivecategoriesareService;SalesandOffice;NaturalResources,Construction,andMaintenance;

    Production,Transportation,andMaterialMoving;andMiliarySpecific.

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    registerednurses,accountants,architects,healththerapists,andeducationcounselors,amongothers.

    TheseoccupationsarelistedinAppendixB.Allegreto,CorcoranandMishel(2004)providethedetails

    aboutthematchingprocess.9

    Comparison Group 4: Expanded Comparison Group

    TheEPI

    list

    contains

    highly

    comparable

    occupations,

    but

    in

    some

    cases

    there

    are

    very

    few

    individuals

    in

    agivenoccupation,althoughtheremaybemoreinotherrelatedoccupations.TheEPIlistalsodoesnot

    containseveralspecificoccupationslistedintheHawaiiTeacherCompensationStudyRFQ.TheRequest

    specificallylistedthecomparisonoccupationsofpostsecondaryteachers,nurses,therapists,social

    workers,engineers,andarchitects.Althoughregisterednurses,healththerapists,andarchitectsare

    includedintheEPIlist,thelistdoesnotidentifypostsecondaryteachers,counselors,socialworkers,or

    engineersasmeetingtheircriteriaforcomparableoccupations.However,theskillsandongoingtraining

    requiredbytheseoccupationsissimilartoskillsandtrainingrequiredinteaching.TheExpanded

    ComparisonGroupisbasedontheEPIlistofcomparableoccupations,butadditionallyincludesall

    occupationsinthesixoccupationalgroupswhereworkerskillsandtrainingaremostsimilartoteachers.

    Theseoccupations

    are

    listed

    in

    Appendix

    B.

    Theexpandedcomparisonoccupationsaredisaggregatedforcomparisonswithsmalleroccupational

    groups.Thesearecommunityandsocialserviceoccupations;thecomparablebusinessoccupations(as

    definedbyEPI);postsecondaryteachersandprofessors;registerednursesandhealththerapists;

    architectureandengineeringoccupations;andallotheroccupationsintheeducation,training,and

    libraryoccupations(otherthanK12teachersandpostsecondaryteachers).

    AppendixBsummarizesthecomparisonoccupationsgroups.

    Adjust ing for the Characteristics of Workers and Occupations

    Asecond

    methodological

    issue

    is

    whether

    or

    not

    to

    adjust

    salaries

    for

    worker

    and

    job

    characteristics.

    For

    example,ifworkersinotheroccupationsinHawaiiareolderormoreexperiencedthanteachers,their

    averagesalariesmaybehigher,eventhoughindividualswithsimilarworkexperiencemightinrealitybe

    paidcomparably.Whilethisislessambiguousforexperience,whetherornottoadjustforother

    characteristicshasbeensubjecttoconsiderabledebate.

    Firsttoconsideristhejobcharacteristicofhoursandweeksofwork.Duetothelengthoftheschoolday

    andschoolyear,teacherstypicallyworkfewercontracthoursandweeksofworkthanotherfull time

    workers.Someresearchersarguethatannualsalaryistheappropriatecomparison:Inthisview,

    teachersmakinganemploymentdecisionarecomparingtheirpayoverthecourseoftheyearwithwhat

    theywould

    make

    in

    ayear

    in

    an

    alternative

    career.

    This

    implies

    that

    teachers

    would

    prefer

    to

    work

    additionalhoursinthesummer,butarelimitedbythecharacteristicsofthejob.Othersarguethatusing

    salaryperhourismoreappropriate:inthisview,teacherssummersoffareabenefitofthejob.Inthis

    view,propsectiveandcurrentteacherscomparetheirpayperhourwithwhattheycouldmakeinthe

    9Allegretto,S.A.,Corcoran,S.P.,&Mishel,L.R.(2004).Howdoesteacherpaycompare?Methodological

    challengesandanswers.Washington,D.C.:EconomicPolicyInstitute.

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    sametimeperiodinanotherjob.Althoughannualsalariesinteachingmightbelowerthaninanother

    occupation,ifthehourlypayisthesame,teachingmaystillbeattractiveduetothelowerhoursand

    fewerweeksofwork.Therealityisthatitislikelythatprospectiveandcurrentteachersprobablyvaryin

    termsofwhichcomparisontheymake.Accordingly,theanalysispresentsbothhouradjustedandun

    adjustedwages.10

    Asecondissueinadjustingwagesiswhethertoadjustfortheworkercharacteristicofadvanced

    degrees.IntheUnitedStatesasawhole,nearly60percentofteachershaveMastersorotheradvanced

    degrees,amuchhigherproportionthanamongothercomparableoccupations.AlthoughMasters

    degreesinteachingareassociatedwithhigherlanesonthesalaryschedule,someresearchersargue

    thatthesedegreesarenotassociatedwithhigherperformance.

    Finally,nonsalarybenefitsmaybedifferentamongoccupations.Retirementpensionsandhealth

    insurancebenefitsarefairlystandardforteaching,butarebecominglesscommonforotherworkers.

    However,

    there

    is

    much

    less

    comparable

    data

    on

    retirement

    and

    health

    benefits

    for

    non

    teaching

    professions.Asaresult,thisanalysisincludessomeinformationontheprevalenceofemployerprovided

    healthinsurancebenefitsforcomparableoccupations,butnoinformationonretirementbenefits.

    Salary Comparisons: OES Data on Occupations in Hawaii and Other States

    FigureIII1,FigureIII2,andTableIII1reporttheresultsfromthecomparisonofteachersalariesto

    otheroccupationsalariesusinginformationfromOESdata.Again,theOESdataprovidesthebest

    coverageofspecificoccupationsacrossandwithinstates,butcontainsnoinformationaboutworker

    characteristics.Theresultsinthissectionexplorehowthemeasuredgapvariesacrossarangeof

    occupationalgroups.

    TeachersinHawaiiintheOESsurveymade,onaverage,$54,410in2013.AsshowninFigureII1,thisis

    substantiallylessthaninthethreebroadoccupationalcategoriesfromComparisonGroups1through3

    describedabove.

    FiguresIII1andIII2showsalariesofteachersinHawaiirelativetotheotheroccupationsinHawaii,with

    thebroadclassificationsinFigureIII1andthenarroweroccupationalfieldsinFigureIII2.FigureIII2

    showsteachersalariesarelowerthansalariesinmanyspecificfields(ComparisonGroup4),withthe

    exceptionofsocialandcommunityserviceoccupations(e.g.,counselorsandsocialworkers)andother

    educationoccupations(notincludingoccupationsinpostsecondaryeducation).

    10SeeBallouandPodgursky(1997)andAllegreto,CorcoranandMishel(2004)formoredetailsofthisdebate.

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    FigureIII1:AverageAnnualSalariesinK12TeachingandBroadComparisonGroups,Hawaii2013

    Source:OES2013.SeeAppendixBfordefinitionsofoccupationgroups.

    FigureIII2:AverageAnnualSalariesinK12TeachingandSpecificComparisonOccupations,Hawaii

    2013

    Source:OES2013.SeeAppendixBfordefinitionsofoccupationgroups.

    ThedatainFiguresIII1andIII2showsthatteachersalariesinHawaiiarelowerthaninmanyofthe

    comparisonoccupations.ThisleadstoaquestionaboutwhethersalarypatternsseeninHawaiiare

    similartopatternsseeninotherstates. Althoughthereisasignificantpaygapbetweenteachersand

    otherprofessionalworkersinHawaii,TableIII2indicatesthatteachersarepaidlessincomparison

    occupationsinrestoftheUnitedStatesaswell.Asnoted,thismaybeinpartduetotheother

    characteristicsoftheteachingprofession.TableIII2alsoshowsthatprofessionalsalariesarelowerin

    HawaiithanintherestoftheUnitedStates.

    $$10,000$20,000

    $30,000$40,000$50,000$60,000$70,000

    Allteachers Professional/technical Expandedcomparison EPIcomparison

    $

    $10,000

    $20,000

    $30,000

    $40,000

    $50,000

    $60,000

    $70,000

    $80,000

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    TableIII1

    AverageAnnualWagesofTeachersandComparisonOccupations

    Hawaii OtherStatesinUS

    K12Teachers $54,410 $56,560

    BroadComparisonGroupOccupations

    OtherProfessional/technicaloccupations $69,196 $74,898

    Expandedcomparisongroup $58,290 $65,293

    EPIcomparisongroup $62,799 $69,484

    ByIndividualOccupationFields

    Socialservicesandcommunityoccupations $43,746 $44,722

    Othereducationoccupations

    (NonK12teachersorPostsecondary)$46,303 $46,681

    Comparablebusiness

    occupations

    (See

    EPI

    list)

    $60,409

    $68,772

    Postsecondaryteachers $69,215 $73,370

    RegisteredNursesandhealththerapists $73,174 $73,263

    Architecture/Engineeringoccupations $76,733 $80,024

    Source:OES2013.SeeTable1fordefinitionsofoccupationgroups.

    TableIII2quantifiesthedifferencesinprofessionalsalariesinHawaiicomparedtotherestoftheUnited

    States.However,thisgeographicpaydifferentialvariesbyoccupation.TeachersinHawaiimakeabout

    fourpercentlessthanteachersintherestoftheUnitedStates.Registerednurses,healththerapists,

    socialandcommunityserviceworkers,andothereducationworkersmakeaboutthesamesalaryin

    Hawaiiasinotherstates.Thepaygapforthebroadergroupsofprofessionalandtechnicaloccupations

    andaggregatedcomparisonoccupationsislarger,withHawaiiwagesabout10percentlowerthan

    wagesintherestoftheUS.

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    TableIII2

    AverageAnnualWagesinHawaiiRelativetoWagesinOtherStatesinUS

    HawaiiAnnualWagesasa

    PercentageofUSAnnual

    Wages

    AllTeachers

    96%

    ComparisonGroup1:Professional/technicaloccupations 92%

    ComparisonGroup2:Expandedcomparisongroup 89%

    ComparisonGroup3:EPIcomparisonoccupations 90%

    Socialserviceandcommunityoccupations 98%

    Othereducation

    (NonK12teachersorPostsecondary)99%

    Comparablebusinessoccupations 88%

    Postsecondaryteachers 94%

    RegisteredNursesandhealththerapists 100%

    Architecture/engineeringOccupations 96%

    Source:OES2013.SeeAppendixBfordefinitionsofoccupationgroups.

    TableIII3reportsthepaygapbetweenteachingwagesandotheroccupationsinHawaiiandintherest

    ofthe

    United

    States.

    In

    Hawaii,

    teachers

    make

    alittle

    more

    than

    three

    fourths

    of

    what

    other

    professionalandtechnicalworkersmake.Thegapissomewhatsmallerforcomparisonoccupations.The

    expandedgroupofcomparisonoccupationsshowsagapofsixpercent,whilethegaprelativetotheEPI

    definedcomparisonoccupationsis15percent.TeachersinHawaiimakemorethansocialand

    communityserviceoccupationsandmorethanothereducationoccupations(withtheexceptionofpost

    secondaryteachersandprofessors).TeachersinHawaiimakeabout10percentlessthantheEPIdefined

    comparablebusinessoccupations.Thepaygaprelativetopostsecondaryteachersandprofessors,

    registerednursesandhealththerapists,andarchitectureandengineeringoccupationsismuchlarger,at

    20to30percent.

    However,the

    pay

    gap

    tends

    to

    be

    even

    larger

    in

    the

    rest

    of

    the

    United

    States.

    The

    only

    exception

    is

    for

    registerednursesandhealththerapists,whereteacherpayinHawaiirelativetotheseoccupationsis

    lowerthanintherestoftheUS.

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    TableIII3

    WagesinTeachingasaPercentageofWagesinComparisonGroupOccupation

    Hawaii UnitedStates

    TeachingWage 100% 100%

    Group1:

    Professional/technical

    occupations

    78.6%

    75.5%

    Group2:Expandedcomparisongroup 93.3% 86.6%

    Group3:EPIcomparisongroup 86.6% 81.4%

    Socialservicesandcommunityoccupations 124.4% 126.5%

    Othereducation

    (NonK12teachersorPostsecondary)117.5% 121.2%

    Comparablebusinessoccupations 90.1% 82.2%

    Postsecondaryteachers 78.6% 77.1%

    RegisteredNursesandhealththerapists 74.4% 77.2%

    Architecture/engineeringOccupations 70.9% 70.7%

    Source:OES2013.SeeAppendixBfordefinitionsofoccupationgroups.

    FigureIII3showsteachingsalariesasapercentageofcomparisonoccupationsalariesinHawaii(the

    darkershadedbars)andintheUnitedStates(thelightershadedbars).Overall,thepaygapinHawaiiis

    similartothegapintheUnitedStates,withsomewhathigherratiosinmostcomparableoccupations.

    FigureIII3:WagesinTeachingasaPercentageofWagesinComparisonGroupOccupations,Hawaii

    andOther

    States

    in

    US

    Source:OES2013.SeeAppendixBfordefinitionsofoccupationgroups.

    0%20%40%60%80%

    100%120%140%

    HI

    USA

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    Salary Comparisons: ACS Data on Individuals in Hawaii and Other States

    TheOESdatahavetheadvantageofhavingahighlevelofcoverage,enablingcomparisonsforrelatively

    narrowoccupationgroups.However,theOESdonotcontaincharacteristicsofindividuals.Toseehow

    teachercharacteristicscomparewithcharacteristicsofotherworkers,andtoseehowsalariesare

    relatedtothesecharacteristics,theACSisthebestsourceofdata.

    TableIII4reportsaveragecharacteristicsofthesampleoffulltime,fullyearworkersinHawaiiandin

    otherstates.Thistableusestwocomparisongroups:allworkerswithatleastaBachelorsdegree,and

    workerswithaBachelorsdegreewhoareinoneoftheEPIdefinedcomparableoccupations

    (ComparisonGroup3).

    TableIII4

    AverageCharacteristicsofFullTimeWorkersinHawaiiandOtherStates

    AmericanCommunitySurvey5YearSample2012

    (StandardDeviationsofCharacteristicsinParentheses)

    Hawaii OtherStatesinUS

    Teachers

    Comparable

    Occupations,

    BA+

    AllNon

    teachers

    withBA+ Teachers

    Comparable

    Occupations,

    BA+

    AllNon

    teachers

    withBA+

    Annual

    wage/salary

    income

    $50,011 $63,526 $69,606 $53,341 $72,542 $73,553

    (14852) (34810) (20064) (20064) (53621) (52088)

    UsualHours

    workedper

    week

    43.44 43.2 44.84 43.79 43.74 44.87

    (8.00) (7.73) (7.17) (7.17) (7.13) (9.14)

    WorkLessthan

    48

    weeksper

    year

    0.13 0.04 0.05 0.24 0.05 0.05

    (0.33) (0.20) (0.43) (0.43) (0.22) (0.21)

    Insurance

    provided

    0.95 0.94 0.89 0.96 0.93 0.91

    (0.22) (0.24) (0.31) (0.19) (0.26) (0.28)

    Advanced

    degree

    0.52 0.37 0.32 0.57 0.37 0.36

    (0.50) (0.48) (0.50) (0.50) (0.48) (0.47)

    Age43.9 44.82 44.76 44.14 42.98 43.27

    (11.41) (11.35) (11.22) (11.22) (11.35) (11.34)

    Female

    0.71 0.59 0.48 0.76 0.56 0.45

    (0.45) (0.49) (0.43) (0.43) (0.50) (0.50)

    Nonwhite0.62 0.68 0.61 0.15 0.23 0.22

    (0.49) (0.47) (0.36) (0.36) (0.42) (0.49)

    Observations 657 746 6,552 133,893 168,036 1,392,987

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    Thedataisrestrictedtoindividualswiththefollowingcharacteristics:(1)notcurrentlyinschool;(2)

    possessaBachelorsdegreeorhigher;(3)workmorethan27weeksperyear;(4)workmorethan35

    hoursperweek;(5)arenotselfemployed;and(6)arebetweentheagesof22and65.Thecomparable

    occupationsarejobssimilartoteachingasidentifiedbytheEconomicPolicyInstitute(2004):

    accountantsandauditors,registerednurses,occupationaltherapists,physicaltherapists,tradeand

    industrialteachers,

    vocational

    and

    educational

    counselors,

    underwriters,

    personnel

    training

    and

    labor

    relationsspecialists,inspectorsandcomplianceofficers(exceptconstruction),architects,forestryand

    conservationscientists,archivistsandcurators,clergy,technicalwriters,editorsandreporters,and

    computerprogrammers(Category3above).

    TheACSalsoindicatesthatteachersinHawaiimakesubstantiallylessthannonteachers.Theaverage

    teachermakesabout40percentlessthantheaveragecollegeeducatednonteacher,andabout25

    percentlessthantheaveragecollegeeducatedindividualinacomparableoccupation.Theestimated

    paygapforthisoccupationgroupissimilartotheestimatedgapintheOESdata.TeachersinHawaiiand

    intheU.S.workaboutanhourlessperweekthanothercollegeeducatedworkers,andtheywork

    substantiallyfewer

    weeks13

    percent

    of

    teachers

    in

    Hawaii

    work

    fewer

    than

    48

    weeks

    per

    year,

    while

    onlyfivepercentofothercollegeeducatedworkershaveasshortofanannualcalendar.However,

    teachersinHawaiiaremorelikelytoworkmoreweeksannuallythanteachersinotherpartsofthe

    UnitedStates:ThirteenpercentofHawaiiteachersworkfewerthan48weeksperyear,comparedto24

    percentofteachersintherestoftheUnitedStates.TeachersinHawaiiarealsosomewhatmorelikelyto

    haveinsuranceofferedthroughtheiremploymentthanothercollegeeducatedworkers,althoughthe

    proportionissimilartothemostcomparableoccupations.Theyarealsoslightlyyoungerthanother

    collegeeducatedworkers,andtheyaremorelikelytobefemale.Theyaresubstantiallymorelikelyto

    haveaMastersorotheradvanceddegree.

    TableIII

    5performs

    similar

    salary

    comparisons

    as

    above,

    but

    includes

    adjusted

    wages.

    The

    unadjusted

    wagesarethesameasshowninTableIII4.Theadjustmentsaremadetocontrolforworkforce

    characteristicssuchasaverageeducationlevelsandageandoccupationalcharacteristicssuchashours

    andweeksworkedperyear.Essentially,theadjustmentmethodologyasks,Iftheaveragenonteacher

    hadcharacteristicsthatwerethesameastheaverageteacherinHawaii,whatwouldtheiraverage

    salarybe?Wagesareadjustedbyperformingaregressionanalysisforeachcategoryofworker(e.g.,

    comparableworkersinHawaii,allworkerswithaBAinHawaii,etc.).Theregressioncoefficientsindicate

    therelationshipsalaryhastoeachcharacteristicinthatoccupationandlocation.Forexample,non

    teachersinHawaiimakeabout$1,340moredollarsperyearforeveryadditionalhourperweekworked

    above35hours.Thehourpremiuminthecomparisonoccupationsissomewhatlower,at$570more

    dollarsper

    year.

    The

    wages

    are

    then

    adjusted

    by

    multiplying

    the

    regression

    coefficients

    by

    the

    average

    characteristicsofteachersinHawaii.ThismethodologyisknownasanOaxacaDecomposition.

    Asnotedearlier,theexactcharacteristicsusedtoadjustwagesissomewhatcontroversial,withvarious

    partiestakingdifferentpositionsonwhethertoadjustfortheshorterhoursandweeksofwork,

    advanceddegrees,andotherdemographiccharacteristics.TableIII5showsthattheadjustmentmatters

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    somewhat.However,ineventhemostconservativecase,teachersinHawaiistillmake25percentless

    thanothercomparableworkersinHawaii,withpaygapsthatareevenlargerwhencomparedtoall

    professionalandtechnicalworkers.However,asintheOESdata,thepaygapforteachersrelativeto

    otheroccupationsisevenlargerintherestoftheUnitedStateswiththesmallestdifferentialbeing

    about32percent.

    TableIII5

    TeachingandNonteachingSalariesAdjustedforIndividualCharacteristics,

    AmericanCommunitySurvey5YearSample2012

    Actual

    Salary

    SalaryAdjustedto

    MatchHoursand

    WeeksofWorkof

    HITeachers

    SalaryAdjustedto

    MatchEducationand

    Personal

    CharacteristicsofHI

    Teachers

    SalaryAdjustedto

    MatchHours,Weeks

    ofWorkandPersonal

    CharacteristicsofHI

    Teachers

    Hawaii

    Teachers $50,011

    Comparable

    Workers$63,526 $62,484 $64,566 $63,303

    AllFulltime

    workerswithBA$69,606 $65,940 $73,892 $70,720

    US

    Teachers $53,341 $53,468 $54,605 $54,725

    Comparable

    Workers$72,542 $70,652 $77,952 $76,711

    AllFulltime

    workerswithBA$73,553 $78,480 $87,216 $83,677

    Source:IPUMS

    ACS

    5Year

    2012.

    Thesampleisrestrictedtoindividualsnotcurrentlyinschool,withaBachelorsdegreeorhigher,

    workingmorethan27weeksperyear,workingmorethan35hoursperweek,notselfemployed,and

    betweentheagesof22and65.Thecomparableoccupationsarejobssimilartoteaching,asidentified

    bytheEconomicPolicyInstitute(2004).SeeAppendixBfordetails.

    Conclusion

    BasedonOESandACSdata,teachersinHawaiimake,onaverage,lessthanmostothercomparable

    occupationsinHawaii.Thelargestgap(about40percent)isforaverageteachersalaryrelativeto

    averagesalariesforallcollegeeducatedworkers.Gapsformorenarrowlydefinedcomparable

    occupationstendtobesmaller,withestimatedgapsofabout10to25percent.Gapsareparticularly

    largerelativetonursesandotherhealththerapists,butteachersalariesarehigheronaveragethanthe

    salariesofsocialandcommunityserviceworkersandothereducationoccupations.Adjustinggapsfor

    teachercharacteristicsonlymarginallychangestheoverallratios.However,thegapsinHawaiirelative

    tootheroccupationstendtobeontheorderoffivepercentagepointssmallerthanparallelgapsinthe

    UnitedStatesasawhole.

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    IV. SALARY STRUCTURE AND LEVEL COMPARISONS

    ThefollowingsectioncomparesHawaiisteachersalarystructuretothatofotherschooldistrictsfrom

    acrossthecountry.Wefirstdescribehowcomparisondistrictswereselectedforthestudy.Second,we

    compareHawaiissalarystructuretocomparisondistrictsstructures.Third,wecompareHawaiisyearly

    salariesto

    those

    of

    comparison

    districts

    without

    adjusting

    for

    workload

    or

    cost

    of

    living.

    Finally,

    we

    comparesalaries,adjustingforworkloadandcostoflivingindividuallyandthentogether.

    Selecting Comparison Districts

    SelectingdistrictstouseinacomparisonofteachersalarystructuresandlevelsisdifficultforHawaii.

    Hawaiiisuniquebecauseitistheonlystatewideschooldistrictinthecountryandbecauseofits

    desirableislandlocation.Often,whenselectingcomparisondistricts,onewouldfocuson:districts

    competingdirectlywiththestudydistrictforinstatepersonnel;thosedistrictscompetingforthesame

    outofstatepersonnel;anddistrictsofsimilarsizeand/ordemographicsfrombothin andoutofstate.

    Hawaiisuniquecircumstancesprovideitwithnoneighboringdistrictsforwhichitcompetesfor

    personnel,nor

    any

    obvious

    out

    of

    state

    districts

    with

    which

    it

    generally

    competes.11

    Still,comparisondistrictsforHawaiicanbeselectedbasedonfactorslikesizeanddemographics.Tofind

    suchcomparisondistricts,APAexaminedtheNationalCenterforEducationStatisticsdataforthe2011

    12schoolyear,themostrecentdataavailable,lookingatdistrictswithover100,000students.APA

    identifiedanumberofdistrictssimilarinsizetoHawaiithatalsohaveasimilarpercentageofstudents

    eligibleforfreeandreducedpricelunches.TableIV1belowshowsthedistrictsselectedbasedonsize

    anddemographics.

    TableIV1

    DistrictName StateTotal

    Public

    StudentsFree/Reduced

    Lunch

    Percentage

    Hawaii Hawaii 182,705 49.30%

    Broward Florida 258,478 57.1%

    ClarkCounty Nevada 312,892 59.5%

    FairfaxCounty Virginia 177,551 25.7%

    Houston Texas 203,012 44.9%

    MiamiDade Florida 350,239 71.9%

    MontgomeryCounty Maryland 146,459 32.2%

    PalmBeach Florida 176,901 53.5%

    SanDiego^

    California

    130,719

    WakeCounty NorthCarolina 148,120 34.5%^SanDiego'sFRLdatawasnotavailablebutthedistrictwasselectedbasedonsizeandbecauseitwasidentifiedbyHawaii

    staffasagoodcomparisondistrict.

    11BasedonconversationswithDOEstaffwhenselectingcomparisondistricts.

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    IndiscussionswithHawaiiDOEstaffitbecameclearthatthelargemilitarypresenceinHawaiihasan

    impactontheavailableteachingpool.Withthisinmind,APAalsoidentifiedanumberofdistrictsthat

    alsohavealargemilitarypresencetouseforcomparison.AmembershiporganizationcalledtheMilitary

    ImpactedSchoolsAssociationrepresentsdistrictswithalargemilitarypresenceintheirschools.Hawaii

    isamemberofthisorganization,andthethreedistrictswiththelargestoverallstudentenrollmentwere

    chosenfrom

    the

    membership

    list

    to

    include

    as

    comparison

    districts.

    Table

    IV

    2lists

    the

    three

    districts

    withtheirsizeandfreeandreducedpricelunchinformation.

    TableIV2

    AgencyName State

    TotalPublic

    Students

    Free/Reduced

    LunchPercentage

    Hawaii Hawaii 182,705 49.3%

    CumberlandCounty NorthCarolina 53,048 47.9%

    Killeen Texas 40,998 41.8%

    VirginiaBeach Virginia 70,978 28.5%

    APAcollectedsalarystructureinformationforallthecomparisondistricts;thisgenerallyincludeda

    salaryschedule,contractdays,and,whenpossible,workloadinformationsuchaslengthofday.APAalso

    identifiedthetotalnumberofpaiddaysforeachdistrict,afactordiscussedlaterinthissection.

    Structure of District Salary Systems

    Asistrueofmanydistricts,Hawaiissalaryscheduleincludesadjustmentsbothforteachereducation

    levelandteacherexperience.Educationrecognitionincludessixpossibleclasses,startingwithClassII(a

    Bachelorsdegree)andendingwithClassVII(aDoctorateorateacherwithaMastersdegreewhohas

    alsoaccumulated

    60

    credits).

    Teachers

    with

    aBachelors

    degree

    and

    30

    credits

    are

    in

    Class

    III,

    along

    with

    thosewithMastersdegrees.Additionalincrementsof15creditsdifferentiateClassesIVthroughVI.The

    recognitionofexperienceisexpressedin15possiblesteps.

    TableIV3showsthenumberofeducationalclasses,numberofsteps,minimumandmaximumsalaries,

    andtherangebetweentheminimumandmaximumsalariesforHawaiiandthecomparisondistricts12.

    Hawaiis201415salaryschedulehasaminimumsalaryinthesalaryschedule,forteacherswhohave

    completedaSATEPof$44,538(usingExhibitBfromtheJuly1,2013agreementastonotinclude

    additionalpayforthe21extrahoursandtheadditionalPDday).Thisdoesnotincludeanyadditional

    stipendsteachersmaybeabletoearn,butonlyexaminesbasepayfromthesalaryschedule.The

    maximum

    pay

    is

    for

    a

    teacher

    at

    Step

    14B

    with

    a

    Doctorate

    or

    Masters

    and

    60

    credits,

    at

    $81,703.

    This

    representsatotalrangeofpossiblebasesalaryof$37,165.

    12DataforMiamiDadeareforthe201314schoolyear,sincedataisnotyetavailableforthe201415schoolyear.

    DataforHoustonarealsoforthe201314schoolyear,asthecompensationisshiftinginthedistrictandthe2013

    14schoolyearismostcomparabledataavailableforthisanalysis.

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    TableIV3

    Numberof

    Education

    Classes

    Number

    ofSteps

    Minimum

    Salary

    Maximum

    Salary Range

    Hawaii 6 15 $44,538 $81,703 $37,165

    Broward 4 20 $40,000 $79,250 $39,250

    Clark 9 14 $34,684 $72,427 $37,743

    CumberlandCounty 2 33 $33,000 $57,530 $24,530

    FairfaxCounty 6 27 $46,756 $100,898 $54,142

    Houston 3 19 $46,805 $75,866 $29,061

    Killeen 3 21 $43,500 $52,755 $9,255

    MiamiDade 4 20 $40,500 $77,525 $37,025

    MontgomeryCounty 4 20 $46,410 $103,364 $56,954

    PalmBeach 5 27 $39,000 $79,750 $40,750

    SanDiego 5 17 $42,210 $87,177 $44,968

    VirginiaBeach 3 36 $40,624 $73,935 $33,311

    WakeCounty 2 37 $35,189 $68,884 $33,695

    ComparisonAverage 4 24 $40,723 $77,447 $36,724

    ThemajorityofcomparisondistrictssalaryscheduleshavefewerclasslevelsthanHawaii.Theaverage

    numberofclasslevelsforcomparisondistrictsisfour.Comparisondistrictsalsotendtoalignclasses

    morecloselytodegreeattainmentthantosimplyearningadditionalcredits.

    Comparisondistrictshave,onaverage,24stepsamuchhighernumberthanHawaiis15.When

    lookingonlyatthestepsforteacherswhohavecompletedaSATEP,Hawaiihasjust12steps.Therange

    forthecomparisondistrictsislarge,from11to37steps.LikeHawaii,districtswithfewerstepshaveless

    alignmentbetweenstepsandyearsofservice.Thismeansthatteachersspendmoretimeineach

    individualstep.Thus,teachersdonothavesalaryincreasesunlessanoverallsalaryincreaseoccurs,or

    unlesstheyattainahigherclasslevel.Districtswithmorestepstendtohavecloseralignmentbetween

    yearsofserviceandsteps.Still,manydistrictsdonotallowyoungteacherstomoveupstepsuntilthey

    arefewyearsintotheircareer.

    ThesalaryinformationinTableIV3hasnotbeenadjustedforjobcharacteristicssuchasworkload,days

    orhours,orcostoflivingdifferencesbetweendistricts.Theexaminationissimplybasedontotalsalary

    figures,andprovidesacomparisonoftherawsalariesofHawaiiandthecomparisondistricts.Also,

    HawaiisalariesareexaminedonlyatStep5andabove;Steps1through3areonlyforteacherswhohave

    notcompletedanSATEP,thecomparisondistrictsdidnothavecomparablesteps.Hawaiisminimum

    salary,$44,358,ishigherthantheaverageminimumsalaryofcomparisondistricts,whichis$40,723.

    Hawaiishighestpossiblesalary,$81,703,isalsohigherthancomparisondistrictsaverageof$77,447.

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    Therangebetweenminimumandmaximumsalariesaverages$36,724,whichisverysimilartothe

    Hawaiirangeof$37,165.

    TableIV4showsminimumandmaximumsalariesforBachelors,Masters,andDoctoratedegree

    classes.

    TableIV4

    Minimum

    BASalary

    Maximum

    BASalary

    Minimum

    MA

    Salary

    Maximum

    MA

    Salary

    Minimum

    Doctorate

    Salary

    Maximum

    Doctorate

    Salary

    Hawaii $44,538 $63,446 $48,100 $68,522 $57,353 $81,703

    Broward $40,000 $71,250 $43,650 $74,900 $48,000 $79,250

    Clark $34,684 $41,292 $40,276 $53,342 $46,008 $69,281

    CumberlandCounty $33,000 $50,000 $36,300 $55,000 $38,830 $57,530

    Fairfax

    County

    $46,756 $85,948 $52,530 $97,188 $56,164

    $100,898Houston $46,805 $68,856 $47,876 $72,360 $48,948 $75,866

    Killeen $43,500 $51,000 $44,675 $52,175 $45,255 $52,755

    MiamiDade $40,500 $70,325 $43,600 $73,425 $47,700 $77,525

    MontgomeryCounty $46,410 $62,201 $51,128 $96,966

    PalmBeach $39,000 $73,750 $42,000 $76,750 $45,000 $79,750

    SanDiego $42,210 $66,707 $44,785 $76,746

    VirginiaBeach $40,624 $69,835 $43,124 $72,335 $44,724 $73,935

    WakeCounty $35,189 $62,354 $38,877 $68,884

    ComparisonAverage

    $40,723 $64,460 $44,068 $72,506 $46,737

    $74,088

    Again,TableIV4onlylooksatHawaiisalariesforStep5andabove.Hawaiiminimumsalariesarehigher

    thanalloftheaverageminimumsalaryfiguresforcomparisondistricts,andtheHawaiiminimumis

    muchhigherforemployeeswithaDoctorateoraMastersplus60credits.Comparisondistrictaverage

    maximumsalariesarehigherforbothBachelorsandMastersdegrees.TheHawaiiDoctoratemaximum

    salaryismuchhigherthanthecomparisondistrictaverage.However,theamountofgrowththatcan

    occurbetweenminimumandmaximumsalariesineachclasstendstobesmallerinHawaiithanin

    comparisondistricts.Thatis,Hawaiiteachershavelessroomforsalarygrowthwithinaclassthan

    teachersincomparisondistricts.

    Theanalysisabove,inTablesIV3andIV4,comparestheminimumandmaximumsalarypointsfor

    Bachelors,Masters,andDoctorateclasses.Thenextsectionprovidesdetailedcomparisonsof12salary

    pointsoftheHawaiisalaryscheduletothecomparisondistricts.Thecomparisonsarebasedonthe

    distributionofteachersinHawaiis201314salaryschedule.Theanalysisbeginsbyexaminingthe

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    proportionofteachersineachcellofHawaiissalaryschedule.TableIV5showsthedistributionof

    teachersinHawaiissalaryschedulebypercentageofteachersineachcell.

    TableIV5

    Step ClassII ClassIII ClassIV ClassV ClassVI ClassVII

    1

    1.2%

    0.1% 0.0% 0.0% 0.0% 0.0%

    2 0.2% 0.0% 0.0% 0.0% 0.0% 0.0%

    3 0.0% 0.1% 0.0% 0.0% 0.0% 0.0%

    5 4.1% 4.9% 0.3% 0.1% 0.0% 0.1%

    6 7.0% 11.7% 2.0% 0.8% 0.4% 0.4%

    7 1.3% 3.2% 1.3% 0.8% 0.5% 1.0%

    8 2.9% 5.7% 3.7% 3.0% 2.7% 5.9%

    9 0.4% 0.8% 0.9% 1.1% 1.0% 4.3%

    10 0.3% 0.6% 0.7% 0.8% 0.9% 4.4%

    11 0.1% 0.2% 0.2% 0.2% 0.2% 1.4%

    12

    0.1%

    0.1% 0.2% 0.2% 0.3% 1.5%

    13 0.2% 0.4% 0.4% 0.5% 0.6% 3.8%

    14 0.1% 0.2% 0.2% 0.2% 0.4% 2.4%

    14A 0.1% 0.1% 0.1% 0.1% 0.2% 1.4%

    14B 0.0% 0.1% 0.1% 0.1% 0.3% 1.9%

    Thegoaloftheanalysisistoidentifykeycomparisonpointsintermsofteachereducationand

    experiencelevelsbetweenHawaiiandotherdistrictsbasedonthecurrentdistributionofHawaii

    teachers.TableIV5showsthatinClassII,therearealargenumberofteachersinSteps5,6,and8.In

    ClassIII,

    alarge

    percentages

    of

    teachers

    are

    also

    in

    Steps

    6,

    7,

    and

    8.

    Class

    IV

    has

    3.7

    percent

    of

    all

    teachersinStep8andClassVhasthreepercentoftheteachersinStep8.ClassVIIhashighpercentages

    ofteachersinSteps8,9,10,and13.

    Usingthisinformation,APAidentified12cellstouseascomparisonpointsinamoreindepthsalary

    comparisonanalysis.Tomakethecomparisonspossible,apredictednumberofyearsmustbeassigned

    toeachsteplevelintheanalysis.BasedontheinformationprovidedinSectionIIonexperience(TableII

    5),APAcreatedtheimputedyearsofexperienceseeninTableIV6.

    HawaiipaysthesameforteacherswithaBachelorsand30creditsasforteacherswithaMasters

    degreeinClassIII.Manyofthecomparisondistricts,however,differentiatebetweenthosetwolevelsof

    education.With

    this

    in

    mind,

    APA

    examines

    Class

    III

    pay

    for

    teachers

    with

    aBachelors

    plus

    30

    credits

    separatelyfromteacherswithaMastersdegree.Lookingatthesepayratescreates15comparison

    points.Dataforall15pointsisshowninallcomparisontables.

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    TableIV6

    ComparisonPoints HawaiiClass HawaiiStep

    ImputedYearsof

    Experience

    1 ClassII 5 3

    2 ClassII 6 5

    3

    ClassII

    7 9

    4 ClassIII 5 3

    5 ClassIII 6 5

    6 ClassIII 8 11

    7 ClassIV 8 13

    8 ClassV 8 13

    9 ClassVII 8 14

    10 ClassVII 9 22

    11 ClassVII 10 24

    12 ClassVII 13 27

    Theanalysis

    of

    comparison

    total

    salaries

    is

    shown

    in

    Tables

    IV

    7A

    7C.

    These

    tables

    show

    information

    on

    Hawaiissalary,theaveragesalaryofthe12comparisondistricts,theminimumsalaryofcomparison

    districts,themaximumsalaryofcomparisondistricts,thenumberofdistrictsbelowHawaiissalary,and

    thennumberaboveHawaiissalary.Thisformatwillbeusedforallsalarycomparisontablesinthis

    section.Noadjustmentshavebeenmadefornumberofdaysworkedorgeographiccostdifferences.

    TableIV7Abelowshowsthat,forthefirstfivecomparisonpoints,lookingatClassesIIandIII(BA),

    HawaiitendstohavehighersalariesforComparisonPoints1,2,4,and5.Thecomparisonaverageis

    higherforComparisonPoint3,ClassIIwithnineyearsofexperience.Inallcases,moredistrictshave

    salariesbelowHawaiisthanaboveHawaiis.

    TablesIV

    7A

    and

    IV

    7B

    show

    that

    average

    salaries

    for

    comparison

    districts

    are

    around

    two

    to

    three

    thousanddollarshigherforthosewithaMastersdegreeversusthosewithaBachelorsplus30credits.

    ThoughHawaiissalariesarestillhigherforteacherswithfeweryearsofexperience,Hawaiispayfora

    Mastersdegreewith11yearsofexperienceislowerthanthecomparisonaverage.Thisisalsotruefor

    ClassIVpaywith13yearsofexperience.

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    TableIV7A

    ComparisonofTotalSalaries

    Comparison

    1

    Comparison

    2

    Comparison

    3

    Comparison

    4

    Comparison

    5

    Class ClassII ClassII ClassII ClassIII(BA) ClassIII(BA)

    Yearsof

    Experience

    3

    5

    9

    3

    5

    HawaiiSalary $44,538 $45,874 $47,250 $48,100 $49,544

    ComparisonAverage

    Salary$42,437 $43,887 $47,333 $43,226 $44,732

    Comparison

    Minimum$33,000 $35,189 $36,500 $33,000 $35,189

    Comparison

    Maximum$49,995 $53,478 $62,201 $51,801 $53,478

    NumberBelow

    Hawaii7 8 8 9 9

    NumberAbove

    Hawaii5 4 4 3 3

    TableIV7B

    ComparisonofTotalSalaries

    Comparison

    6

    Comparison

    7

    Comparison

    8

    Comparison

    9

    Comparison

    10

    Class ClassIII(BA) ClassIIIMA ClassIIIMA ClassIIIMA ClassIV

    YearsofExperience 11 3 5 11 13

    Hawaii $52,561 $48,100 $49,544 $52,561 $54,663

    ComparisonAverage $50,445 $45,701 $47,312 $53,676 $56,161

    Minimum $40,000 $36,300 $38,877 $44,000 $44,000

    Maximum $66,163 $56,066 $60,466 $75,850 $81,802

    NumberBelow

    Hawaii9 9 9 8 8

    NumberAbove

    Hawaii3 3 3 4 4

    TableIV

    7C

    shows

    that,

    even

    at

    the

    higher

    levels

    of

    education

    and

    experience,

    Hawaii

    tends

    to

    pay

    more

    thanmostofthecomparisondistricts,asshownbythenumberofdistrictsbelowHawaii.Yet,the

    averagesalariesofcomparisondistrictsarehigherforfourofthecomparisonpointspresentedinTable

    IV7C.Thelargestgapisforteacherswith24yearsofexperience,inClassVII.

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    TableIV7C

    ComparisonofTotalSalaries

    Comparison

    11

    Comparison

    12

    Comparison

    13

    Comparison

    14

    Comparison

    15

    Class ClassV ClassVII ClassVII ClassVII ClassVII

    Yearsof

    Experience

    13

    14

    22

    24

    27

    Hawaii $56,850 $62,672 $66,489 $68,482 $72,653

    ComparisonAverage $57,853 $59,324 $68,171 $71,052 $73,063

    Minimum $44,000 $44,000 $51,150 $51,150 $52,175

    Maximum $85,285 $90,051 $101,354 $103,634 $103,634

    NumberBelow

    Hawaii8 8 6 5 6

    NumberAbove

    Hawaii4 4 6 7 6

    Adjust ing for Work Load and Geographic Cost Dif ferences

    Next,wecomparethesalaries,adjustingforbothworkloadandgeographiccostdifferences.Workload

    adjustmentsincludecontractdays,totalcontracthours,andpaiddays.Geographiccostdifferences

    adjustmentsincludetheComparableWageIndex(CWI)andCostofLiving(COL)adjustment.

    Workload

    Thenexttableslookatthecomparisonpointsbyexaminingtheimpactsofdifferencesinteacher

    workloads.Workloadcanbeexaminedinafewways,butitgenerallyincludesthenumberofdays

    contractedforworkandthenumberofhourscontractedperday.Itisimportanttorememberthat

    contracthoursonlyreflectthenumberofdaysexplicitlyinthecontract,anddonotincludeanyhours

    teachersworkoutsideofcontracthours.Forthisstudy,wearealsolookingatthepaiddaysforeach

    district.Paiddaysincludepaidvacationdayswithinthecontractyear.Mostofthecomparisondistricts

    didnothaveexplicitfiguresforpaiddays,soweexaminedcalendarstoestimatethepaiddaysfor

    teachersineachofthe12districts.TableIV8showsHawaiisfigures,comparisonaverage,comparison

    minimum,andcomparisonmaximumforcontractdays,workhours,andpaiddays.

    Hawaiihas1.5fewerdaysthanthecomparisondistrictaverage.Hawaiisaveragenumberofworkhours

    isahalfanhourlowerthanthecomparisondistrictaverage.Nodistricthasfewerworkhoursthan

    Hawaii,thoughanumberofdistrictshaveequivalentsevenhourworkdays.Paiddaysrangefrom204

    to222

    days,

    with

    the

    comparison

    district

    average

    at

    211.5,

    5.5

    days

    below

    Hawaiis

    paid

    days.

    Again,

    mostpaiddaysfiguresareestimatesbasedonthecalendarofeachcomparisondistrict.Hawaiihad

    about1percentfewerdaysand8percentfewerhoursthancomparisondistricts,butabout2percent

    morepaiddays.

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    TableIV8

    ComparisonofContractDays,WorkHours,andPaidDays

    ContractDays WorkHours PaidDays

    Hawaii

    190.0

    7.0

    216.0

    ComparisonAverage 191.5 7.5 211.5

    ComparisonMinimum 184.0 7.0 204.0

    ComparisonMaximum 200.0 8.0 222.0

    TablesIV9A9Cshowthe15comparisonpointsafteradjustingforcontractdays.TablesIV10A10C

    thenlookatthecomparisons,adjustingfortotalcontracthours.

    TableIV9A

    ComparisonAdjusting

    for

    Contract

    Days

    Comparison

    1

    Comparison

    2

    Comparison

    3

    Comparison

    4

    Comparison

    5

    Class ClassII ClassII ClassII ClassIII(BA) ClassIII(BA)

    YearsofExperience 3 5 9 3 5

    Hawaii $44,538 $45,874 $47,250 $48,100 $49,544

    ComparisonAverage $42,159 $43,607 $47,019 $42,960 $44,465

    Minimum $32,320 $34,463 $35,747 $32,320 $34,463

    Maximum $48,713 $52,453 $60,910 $51,358 $55,114

    NumberBelow

    Hawaii7 7 7 9 9

    NumberAbove

    Hawaii5 5 5 3 3

    TablesIV9AaboveandTablesIV9BandIV9Cbelowallshowthatwhenadjustmentsaremadefor

    contractdays,Hawaiissalariestendtobecomemorecompetitiveinrelationshiptothecomparison

    groupaverage.Themovementisnotlarge,butisenoughtocauseHawaiissalarytobeabovethe

    comparisonaverageforsomecomparisons,whereitwasbelowtheaverageswithoutadjustments

    (showninTables7A7C).However,Hawaiissalaryisstilllowerthanthecomparisondistrictaveragefor

    ComparisonPoints13and14.

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    TableIV9B

    ComparisonAdjustingforContractDays

    Comparison

    6

    Comparison

    7

    Comparison

    8

    Comparison

    9

    Comparison

    10

    Class ClassIII(BA) ClassIIIMA ClassIIIMA ClassIIIMA ClassIV

    Yearsof

    Experience

    11

    3

    5

    11

    13

    Hawaii $52,561 $48,100 $49,544 $52,561 $54,663

    ComparisonAverage $50,145 $45,401 $47,008 $53,322 $55,789

    Minimum $39,175 $35,552 $38,076 $43,093 $43,093

    Maximum $68,320 $54,628 $58,916 $73,905 $79,705

    NumberBelow

    Hawaii8 8 9 8 8

    NumberAbove

    Hawaii4 4 3 4 4

    TableIV9C

    ComparisonAdjustingforContractDays

    Comparison

    11

    Comparison

    12

    Comparison

    13

    Comparison

    14

    Comparison

    15

    Class ClassV ClassVII ClassVII ClassVII ClassVII

    YearsofExperience 13 14 22 24 27

    Hawaii $56,850 $62,672 $66,489 $68,482 $72,653

    Comparison

    Average

    $57,512

    $58,980

    $67,721

    $70,547

    $72,514

    Minimum $43,093 $43,093 $50,095 $50,095 $53,012

    Maximum $83,098 $87,742 $98,755 $100,977 $100,977

    NumberBelow

    Hawaii8 8 7 6 7

    NumberAbove

    Hawaii4 4 5 6 5

    Toexaminetotalworkload,contractdaysandhoursperdaycanbemultipliedtocreatetotalhours

    contractedperyear.Hawaiistotalworkload,190daysmultipliedby7hours,wouldbe1,330contract

    hours.Comparisondistrictstotalworkloadsrangefrom1,325to1,552contracthours,withanaverage

    of1,443

    hours.

    This

    is

    around

    8.5

    percent

    more

    contract

    hours

    than

    Hawaii.

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    TablesIV10A10Cbelowrunthecomparisons,adjustingfortotalcontracthoursandhoursperday.

    Whensalariesareadjustedbycontracthours,Hawaiisalariesbecomeevenmorecompetitiverelativeto

    comparisondistricts.Hawaiissalaryishigherthanthecompar