Socio-Economic Importance of Raising Teachers' Remuneration

Abstract

The subject matter of this article is the socio-economic outcome of teacher’s remuneration reform, which made a positive impact on the quality of school education. However, the economic difficulties currently experienced by Russia could jeopardize the achieved progress. This paper is based on the results of “The Effectiveness of the School Education” monitoring study conducted by the Center for Continuing Education Economics of Russian Presidential Academy of National Economy and Public Administration (RANEPA) in 2015 in Sverdlovsk, Voronezh, and Ivanovo regions. The study included a survey of 2,800 school teachers, 2,800 households with at least one school student, and 200 principals of educational institutions, which was conducted in the form of questionnaire interview. The survey was conducted on a representative sample including both urban and rural populations. The study showed that, in 2013/2014 school year, the average salary of teachers reached the average salary in the region, which complied with the requirements of the May 2012 Presidential Decree. This ratio was maintained in the following year. Moreover, the salary of teachers fully reflected the differentiation of socio-economic development indicators in the reviewed Russian regions. The main positive effects resulting of raising teachers’ remuneration include rejuvenation of the teaching corps, improvement of teachers’ qualifications and their entry into the Russian middle class. The article also examines the impact of negative developments in the economy on the prospects for reproduction of socio-economic results achieved by raising teachers’ remuneration. Among such effects, the authors consider the decline in income of school students’ parents, which may lead to lower demand for paid educational services that are a source of extra-budgetary funding for school education. In this light, the authors review the projective educational strategies of school students’ parents. Based on the analysis of economic activities of school institutions and educational strategies of school students’ parents in the unfavorable economic environment, the article shows that any decrease in school funding from regional budgets (as a result of their de cit) will lead to the undermining of achieved results.