An Economic Analysis of Teacher Quality Versus Teacher Quantity: Tensions and Trade-offs

Jennifer Rice

Many resources are devoted to elementary and secondary education. Of these, teachers are indisputably a key, if not the key resource in producing student learning. In fact, quality teachers are a fundamental requirement for realizing the high standards being emphasized across the country and measured through an array of high-stakes accountability systems. The importance of teacher quality in producing student achievement implies that teacher policy is a promising direction for realizing goals of productivity, equity, and adequacy in public education. Not surprisingly, the past two decades hold numerous examples of policies aimed at enhancing teacher quality, and the recent federal education legislation “No Child Left Behind” further underlines the importance of having a high quality teacher in every classroom in every school. However, many school systems across the country continue to employ large numbers of teachers who, by most indicators, do not fit into the category of “high quality.” Further, the problem is most pronounced in the most disadvantaged schools and school systems. Given this problem, which most scholars agree is likely to persist for some time, a number of policy questions emerge: What is teacher quality? To what degree is there really a shortage of qualified teachers and where is the problem most concentrated? What sorts of policies might help reduce these shortages and what are the costs associated with these policy alternatives? To what degree is the enhancement of teacher quality in tension with the popular policy alternative to decrease class size (i.e., increase teacher quantity), and what is the appropriate balance between teacher quality and teacher quantity? This paper is part of a broader research agenda aimed at addressing these difficult but important questions. Previous work has examined what counts as teacher quality and where the shortages are most pronounced (Rice, 2002; Allgood & Rice, 2002). Given what we know about the context and magnitude of the problem, this paper is a first step in considering policy alternatives that hold promise for enhancing teacher quality. The paper focuses on two possibilities intended to recruit teachers from non-traditional pools and attract them to targeted areas of particular need. The specific approaches addressed in this paper stand among a multitude of alternatives to recruit and retain high quality teachers; as this line of work progresses, other strategies will also be considered. The paper represents an effort to consider these kinds of policies from an economic perspective, presenting the costs associated with these approaches and the outcomes one might expect from them. In the face of limited resources, more information is needed to guide investment decisions aimed at getting high quality teachers in every classroom, even those in the most challenging schools. This paper begins to address that need.

About Jennifer Rice

Jennifer King Rice is an Associate Professor in the Department of Education Policy and Leadership at the University of Maryland. She earned her M.S. and Ph.D. degrees from Cornell University. Prior to joining the faculty at Maryland, Dr. Rice was a researcher at Mathematica Policy Research in Washington D.C. Her research draws on the discipline of economics to explore education policy questions concerning the efficiency, equity, and adequacy of U.S. public schools and school systems, and her current work focuses on teachers as a critical resource in the education process. She has written a number of book chapters and journal articles; her most recent publications include articles in Educational Evaluation and Policy Analysis, Economics of Education Review, Education Administration Quarterly, and the Journal of Education Finance. Dr. Rice has collaborated with a variety of policy research organizations including The Urban Institute, The Economic Policy Institute, and The Finance Project. Her publications and presentations have precipitated invitations to share her expertise with various organizations including the U.S. Department of Education Office of Education Research and Improvement, the Maryland State Department of Education, the New York State Board of Regents, the Maryland State Attorney General's Office, and the Society of Government Economists. She recently completed a term of service on the board of directors of the American Education Finance Association, and is a member of the National Center for Education Statistics Technical Planning Panel for School Finance.