JAASEP SPRING/SUMMER 2026 Part 5 of 7
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Teacher salaries have been widely discussed in educational policy, often with the assumption that higher compensation supports improved student outcomes, including high school graduation rates (Papay & Kraft, 2015). Existing research indicates that teacher pay may influence teacher retention, access to qualified educators, and overall school stability; however, outcomes vary across student groups and regions. This study examines correlations between state-level teacher salaries during the 2018–19 academic year and graduation rates for major demographic groups, including racial/ethnic populations and vulnerable student groups such as economically disadvantaged students and students with disabilities. The purpose of this research is to clarify whether higher teacher pay is consistently associated with improved graduation outcomes across these populations or whether additional targeted supports are required.
Data Sources Teacher salary data for the 2018–19 academic year were obtained from the National Center for Education Statistics (NCES, 2019) and supplemented with figures from the National Education Association’s Rankings of the States report (NEA, 2019).
Abstract
This study examines the association between average teacher salaries and high school graduation rates across U.S. states during the 2018–19 academic year, with a focus on both racial/ethnic groups and vulnerable student populations. State-level graduation outcomes were analyzed for White, Asian, Black, Hispanic, and American Indian/Alaska Native students, as well as for economically disadvantaged students, students with disabilities, homeless students, foster care students, and students with limited English proficiency. Using Pearson correlation coefficients, the study assessed whether higher teacher salaries were consistently linked to improved graduation rates across these diverse groups. Findings indicate moderate positive correlations for Asian, Black, and Hispanic students, suggesting that higher teacher pay may support stronger graduation outcomes for these populations. In contrast, weak or negligible correlations were observed for White and American Indian/Alaska Native students, and negative or near-zero correlations emerged for economically disadvantaged students, students with disabilities, homeless students, and foster care students. These results suggest that while competitive teacher compensation may contribute to improved outcomes for some student groups, salary increases alone are insufficient to address longstanding disparities affecting vulnerable populations. A more comprehensive policy approach—pairing competitive compensation with targeted academic, social-emotional, and wraparound supports—may be necessary to promote equitable graduation outcomes across states.