Writing in the blog of the London School of Economics and Political Science, researchers Peter Dolton and Oscar Marcenaro-Gutierrez describe their analysis of data from the world’s largest economies and argue:
[There is] a clear statistical association between higher relative teachers’ pay and higher standardised pupil scores across countries. Our research with aggregate country data supports the hypothesis that higher pay leads to improved pupil performance. As an indication of the relative size of this effect, we find that a 10 per cent increase in teachers’ pay would give rise to a 5-10 per cent increase in pupil performance. Likewise, a 5 per cent increase in the relative position of teachers in the income distribution would increase pupil performance by around 5-10 per cent.