Andy Spears reacts to the annual report from the Economic Policy Institute on the penalty college graduates pay for going into teaching instead of other fields.
That pesky teacher pay gap analysis is out – and once again, it tells the story: America is not a fan of teachers.
Here’s the big takeaway:
In 2025, the teacher pay penalty stood at an estimated 25.2%—meaning teachers earned about a quarter less than comparable college graduates in other professions. That’s a slight improvement from 2024’s record high of 26.9%, but still more than four times the 6.1% penalty recorded in 1996.
The teacher pay penalty was 6.1% in 1996 and it is 25.2% today.
Here’s what that means. Someone who became a teacher in the 1980s and 1990s knew they’d likely earn less than similarly-educated professional peers, but also knew the benefits package (often including pensions and quality health insurance offerings) would make up for it.
30 years later, someone becoming a teacher makes substantially less – and even if you include benefits (which have been adjusted down in many states), the gap remains at nearly 15%.
Teacher pay has effectively stagnated – while the responsibilities assigned to teachers have increased.
Which may offer one explanation for the teacher shortage that’s now turning into a crisis.