Reference Effect of Preschool Teachers’ Salary and Its Influence on Preschools’ Service Quality: An Empirical Study in China

Abstract

Research from the Organisation for Economic Co-operation and Development (OECD) has found strong links between the pay and conditions of preschool teachers and the quality of preschool service provided. In order to improve the quality of private preschool, China puts forward “Several Opinions on Deepening the Reform and Standardized Development of Preschool Education” at the end of 2018, which mentioned that private preschool teachers' salaries should refer to public preschool teachers. This involves the influence of different types of preschool teachers, and the impact of their salaries on the quality of preschools. Although teacher's salary is an important research topic in the world, the reference of teachers’ salary between different types of preschools and its influence on preschools’ service quality have not been studied in previous literature. In order to solve this question, this study draws the following three conclusions based on a survey in two districts from China with different numbers of public and private preschools: (1) The teachers’ salary of public preschools does have a referential effect on the teachers’ salary of private preschools; (2) It works only when the supply of public preschools in a region is relatively inadequate, the teachers’ salary of public preschools will play a reference role on the teachers’ salary of private preschools; (3) Compared to regions with reference salaries, regions without reference salaries are more conducive to the improvement of preschool service quality. While the education system differ, the problem discussed in this research reflects a challenge faced by many countries.