Education policymakers are concerned with teacher salaries because they are the single largest component of educational costs in a country's education system; they have been directly linked to recruitment and retention of teachers, and they have been indirectly linked to teacher quality. Issues of comparability associated with teacher compensation and the teaching environment influence international comparisons of teacher salaries, however. For instance, the structure and makeup of compensation and benefits packages can differ dramatically from country to country. Some countries rely heavily on forms of cash compensation other than basic salary, such as bonuses. Others have fringe benefits that differ substantially in scope from those in the United States. In addition, the share of gross teacher salary earmarked for retirement and health care variesoften substantiallyacross countries. U.S. teachers, for instance, contribute between 13 and 21 percent of their gross salary to state retirement funds, national social security, and health care premiumssubstantially more than teachers in other countries. Swedish teachers, on the other hand, have no paycheck deductions for retirement or national social security. As much as possible, Indicator 40 includes the bonuses, stipends, supplements, and overtime pay generally received by teachers; but it excludes fringe benefits and employer-paid contributions to pension funds and national social security.
International teacher salary comparisons can be further affected by intercountry variations in working conditions and job characteristics. Countries in which teachers receive virtually identical salaries may not, in fact, be receiving the same services in return or be providing teachers with the same opportunities. Teachers who face more demanding teaching conditions (e.g., larger number of instructional hours, heavier class loads) presumably require higher compensation to remain equally satisfied with their jobs. However, data about the larger context surrounding teaching are not available.
International teacher salary comparisons are also affected by definitional differences that affect most, if not all, international education comparisons. For instance, some categories of teaching staff have no equivalent U.S. counterparts. To illustrate, the French education system, for example, utilizes at least nine categories of teaching personnel beyond the traditional U.S. categories of primary, elementary, and secondary education. It is not always clear which categories are included in an indicator and how they are treated.
