High school age gap dating


22-Oct-2017 08:12

In addition, the “professionals” to whom these teachers are compared also include all teachers; indeed, they are one of the largest components of this group.

The authors mislabel the group in their article as “all other professionals,” but the Bureau of Labor Statistics (BLS) table from which their data are drawn clearly shows it to be an occupational grouping that includes teachers.

In that table, Social Security contributions are subsumed into a larger category that also includes Medicare, worker’s compensation, and federal and state unemployment insurance.

This problem does not exist when using the proper table for private-sector professionals, as Social Security contributions are separated out.

Correcting the three problems identified above, we find that employer contributions for retirement were 12.8 percent of earnings for public school teachers and 10.5 percent for private professionals in June 2006, a gap of about one-fifth.

Since that time, as shown in Figure 1, contributions for private professionals have remained flat, while contributions for teachers have risen, doubling the gap between the two by September 2008. These data show that the rate of employer contributions to retirement benefits for public school teachers in 2008 is substantially higher than for private professionals: 14.6 percent of earnings for teachers vs. Moreover, the gap has widened over the four years the data have been available.

Finally, while Mishel and Rothstein state that the appropriate comparison is with private-sector professionals, this group includes all state and local government professionals, too.

One does not generally observe comparable retirement plans for professionals and lower-tier managers in the private sector, since most employers have replaced traditional DB plans with defined contribution (DC) or similar 401(k)-type plans, in which the employer and employee contribute to a retirement account that belongs to the employee.In spite of dissent from this view by some researchers (see sidebar), in this case we find that conventional wisdom is right: the cost of retirement benefits for teachers is higher than for private-sector professionals.that employer contributions for retiree benefits for teachers are no higher than for professionals in the private sector.We measure the cost of retirement benefits as a percentage of earnings.

Virtually all states specify in law that the employer will contribute a certain percentage of teacher salaries to a DB pension fund (employee contributions are similarly specified), and it is commonplace to compare such contribution rates among the states.To take a simple example, suppose two occupations, one of them teachers, have identical earnings and retirement benefits, but differ in health insurance benefits.



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