Why some communities pay more than others? The example of Illinois teachers

Governments are increasingly concerned with personnel rests. This article investigates determinants of teacher salaries in Illinois school districts (Fiscal Year 1989-1990) from three perspectives: local characteristics of the school districts, the ability of citizens and communities to pay, and composition of the property tax base. Each perspective is examined at four salary levels. Of the local characteristics, districts with large numbers of teachers or more experienced teachers pay higher salaries. Of the "ability to pay" indicators, districts with higher percentages of college graduates in the community or more tax base per pupil are more likely to pay more. Of the tax bare variables, districts with a greater reliance on agricultural property in the tax bare ave more likely to pay teachers less. Districts with a higher reliance on commercial property in the tax base pay higher salaries ar they export the costs of salaries to nonresidents. Overall the effect of the composition of the tax base on salaries is the most important finding. These findings might generalize to employees of other local governments that rely an property taxation as a primary source of revenue.