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Raising the Floor: Teacher Retention Effects of a Statewide Minimum Salary Increase. Working Paper No. 336-0226

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Title: Raising the Floor: Teacher Retention Effects of a Statewide Minimum Salary Increase. Working Paper No. 336-0226
Language: English
Authors: Gema Zamarro, Andrew M. Camp, Josh McGee, Taylor Wilson, Miranda Vernon, National Center for Analysis of Longitudinal Data in Education Research (CALDER) at American Institutes for Research (AIR)
Source: National Center for Analysis of Longitudinal Data in Education Research (CALDER). 2026.
Availability: National Center for Analysis of Longitudinal Data in Education Research. American Institutes for Research, 1000 Thomas Jefferson Street NW, Washington, DC 20007. Tel: 202-403-5796; Fax: 202-403-6783; e-mail: info@caldercenter.org; Web site: https://caldercenter.org
Peer Reviewed: N
Page Count: 56
Publication Date: 2026
Sponsoring Agency: Institute of Education Sciences (ED)
Contract Number: R305C240007
Document Type: Reports - Research
Descriptors: Teacher Salaries, State Legislation, Educational Legislation, Teacher Persistence, Merit Pay, Incentives, Public Schools, School Districts
Geographic Terms: Arkansas
Abstract: Attracting and retaining a high-quality teacher workforce is a central challenge for education policy, and higher teacher salaries are often proposed as a solution. The LEARNS Act increased Arkansas's minimum teacher salary from $36,000 to $50,000, guaranteed all teachers a minimum raise of $2,000, and provided school districts with the flexibility to deviate from traditional, seniority-based salary schedules. We collected districts' teacher salary schedules one year before and after implementation and integrated these data with administrative records to study districts' adjustment to the law and teacher retention during the first three years of the reform. We find that districts made the minimum adjustments necessary to meet the new requirements. These changes increased the competitiveness of starting salaries across districts and reduced salary variation statewide. The Act also substantially increased salaries in rural and high-poverty districts, weakening the negative relationship between starting salaries, student poverty, and rurality. Using a triple-difference design, we find that teachers who received raises exceeding the $2,000 minimum were more likely to remain in their districts, with the strongest retention effects among those receiving the largest increases. We also find evidence that these effects may fade as inflation erodes the real value of the initial salary gains. [CALDER collaborated with the Office of Education Policy at the University of Arkansas and the Arkansas Department of Education for access to data for this report.]
Abstractor: As Provided
IES Funded: Yes
Entry Date: 2026
Accession Number: ED680909
Database: ERIC
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  Data: National Center for Analysis of Longitudinal Data in Education Research. American Institutes for Research, 1000 Thomas Jefferson Street NW, Washington, DC 20007. Tel: 202-403-5796; Fax: 202-403-6783; e-mail: info@caldercenter.org; Web site: https://caldercenter.org
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  Data: Attracting and retaining a high-quality teacher workforce is a central challenge for education policy, and higher teacher salaries are often proposed as a solution. The LEARNS Act increased Arkansas's minimum teacher salary from $36,000 to $50,000, guaranteed all teachers a minimum raise of $2,000, and provided school districts with the flexibility to deviate from traditional, seniority-based salary schedules. We collected districts' teacher salary schedules one year before and after implementation and integrated these data with administrative records to study districts' adjustment to the law and teacher retention during the first three years of the reform. We find that districts made the minimum adjustments necessary to meet the new requirements. These changes increased the competitiveness of starting salaries across districts and reduced salary variation statewide. The Act also substantially increased salaries in rural and high-poverty districts, weakening the negative relationship between starting salaries, student poverty, and rurality. Using a triple-difference design, we find that teachers who received raises exceeding the $2,000 minimum were more likely to remain in their districts, with the strongest retention effects among those receiving the largest increases. We also find evidence that these effects may fade as inflation erodes the real value of the initial salary gains. [CALDER collaborated with the Office of Education Policy at the University of Arkansas and the Arkansas Department of Education for access to data for this report.]
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      – Text: English
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      – SubjectFull: Teacher Salaries
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      – SubjectFull: Public Schools
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      – SubjectFull: Arkansas
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