Reference no: EM133389558

Let's say Jane begins teaching in September of the current year. She has a Bachelors of Education (BEd) degree (Group III) and no experience. She will earn $51,738 during the current school year. Next year, she will move up one step in the new schedule and earn $55,213, a raise of $3,475, or 6.7 percent.

Once she has received her master's (MEd) degree or qualified as a subject specialist, she will move over to the next column (Group IV). Otherwise, she will stay in the Group III column and advance one step each year until she reaches step 10, which she tops out. Note that she will receive the step increase as well as any entire schedule increases that the school board gives each year. So any increase to the entire schedule translates into a larger increase for those teachers currently being paid according to the schedule.

Calculate the size of the pay differential for increased seniority versus increased education. What behaviours do you believe these differentials will motivate? In other words, what pays better: growing older or taking courses?