Pay Gaps in Education are Bad. Pensions Make Them Worse.

Education, as a field, isn’t supposed to have pay gaps. In the vast majority of school districts, salaries are determined by uniform salary schedules based on educators’ years of experience and educational attainment. This policy should, at least in theory, guard against gender- or race-based salary inequities.

Sadly, pay gaps persist. In a new report, we studied Illinois’ educator data and found that women, regardless of experience level, earn markedly lower salaries than their male peers. As shown in the graph below, gender-based salary gaps begin in educators’ first year and increase until an educator reaches her 30th year of service.

As we show in the paper, these gaps also persist into retirement. For example, a teacher first becomes eligible for a pension after working for ten years in Illinois. At that point in their career, women’s average salary is $8,000 less than their male colleagues. This salary gap translates in a $2,100 disparity in annual pension benefits. And that pension inequity continues to grow each year. After working 30 years, a common retirement age, male educators get an average pension that is $8,000 more valuable than the average pension women receive. That is $8,000 less per year. After 10 years in retirement, men will have amassed an additional $80,000 in retirement benefits.

In short, salary schedules fail to sufficiently guard the education field against large and persistent gaps in salary and retirement benefits.

To learn more about gender-and race-based inequities in salaries and pensions, read the full report, here.

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