Abstract
Per pupil spending on teachers' salaries, which is the largest component of instructional cost, is itself the product of four factors: the teacher/pupil ratio, the level of starting salaries, the steepness of the salary schedule above the minimum, and the actual placement of incumbent teachers on the salary schedule. Using California data on grades 3 and 6, this paper finds that using per pupil expenditure on teachers' salaries to predict student achievement gives very different results than by using these four factors. This implies that previous production function studies may have failed to discover relationships that existed in the data they analyzed. Results of these studies in the aggregate will not be clear until they are done in a common format which systematically accounts for the factors of instructional cost.
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